| Commentary

359 Advances and guarantees

| Commentary

359 Advances and guarantees

Advances (which may be returnable) and guarantees (which are generally non-returnable) are sometimes not brought into account unless and until they are wholly earned. In the case of an advance for videogram rights payable against a royalty on the sale of videograms, the point at which the advance is earned will be the point at which the total royalties payable will have equalled the advance and the distributor becomes entitled to receive royalty income. As many distributors never recoup their advances, the exclusion of money paid by way of advance or minimum guarantee unless and until

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