Distribution statement

Distribution statement
See also
Materiality principle Accounting estimate Minute book Certificate of good standing Tax books Articles of amendment Share certificate Income summary account Accounting concepts

Distribution statement is 'a statement identifying the place or places of distribution, distributor or distributors, and date or dates of distribution of a resource in a published form' according to RDA.

The information contained in the Distribution statement

The distribution statement must be in an approved form and must state :

• the name of the entity making the distribution
• the date on which distribution takes place
• the amount of the distribution
• the amount of the franking credit attached to the distribution
• the franking percentage for the distribution
• the amount of any withholding tax deducted from amounts paid by the entity
• the name of the shareholder
• where distribution is unfranked a statement to that effect
• where any or all of the amount of the distribution which is not considered to give rise to revenue is the part declared to give rise to foreign revenue, and
• where the distribution is franked the franked amount and the unfranked amount of the distribution

Where a facsimile or a reproduction has a distribution statement or statements referring to the original manifestation as well as to the facsimile or reproduction, the distribution statement or statements referring to the facsimile or reproduction must be recorded. Record any distribution statements referring to the original as a statement of distribution of the related manifestation .

Amending a distribution statement

A corporate tax entity may approach the Commissioner to allow him to change the franking credit granted for distribution by changing the distribution statement. The application must be made in writing and must contain all information relevant to the matters that the Commissioner is required to consider when making his decision. The ATO information sheet states that the Commissioner is expected to exercise his discretion (to allow for a change in the distribution statement) only if the amount of the franking credit stated in the distribution statement was not intended. The entity or member of the entity may object against to the Commissioner's decision.

Frankable distribution

An entity subject to corporation tax that carries out franked distribution must issue a distribution statement to its members. An entity that distributes on a frankable distribution basis must provide the recipient with a distribution statement containing certain information about the entity and the distribution. The deadline for reporting on the distribution depends on whether the entity is a private company or not for the financial year in which the distribution is made. A private company entity for a financial year in the accounts before the end of the four months following the end of the financial year in which the division was made, or any other date authorised by the Commissioner, must make the division.

Examples of Distribution statement

• For a book: “This book was distributed by ABC Publishers and was available on Amazon.com, Barnes & Noble, and the ABC Publishers website on June 15th, 2020.”
• For a magazine: “This magazine was distributed to newsstands and subscribers across the US via USPS throughout the month of July 2020.”
• For a film: “This film was released in theaters across the US on August 1st, 2020 and was available on streaming services such as Netflix and Hulu on August 15th, 2020.”

Advantages of Distribution statement

Distribution statement is an essential part of the publishing process, and it has many advantages. It provides:

• Clarity and transparency in the publishing process, as it records and identifies the place or places of distribution, distributor or distributors, and date or dates of distribution of a resource in a published form.
• An easy way to track the distribution of the published material, and ensure that the correct material reaches the right place and date.
• A cost-effective way to monitor the distribution of the material, as it requires less administration and paperwork.
• A more secure way to protect the intellectual property rights of the publisher, as it provides a record of the published material.
• A way to ensure compliance with copyright and other laws governing the publishing industry.

Limitations of Distribution statement

Distribution statements have certain limitations. These include:

• They provide limited information about the resource and its distribution, such as place, distributor, and date of distribution, but do not provide information about the resource itself.
• Distribution statements are not typically required for unpublished resources and works, such as those found in archives and special collections.
• Distribution statements cannot provide details about the resource’s content, such as its format, audience, or purpose.
• Distribution statements are not applicable to digital resources, as they are typically distributed through a variety of digital channels.
• Distribution statements do not provide information about the rights associated with the resource or how it may be used.

Other approaches related to Distribution statement

A Distribution statement is a statement that identifies the place or places of distribution, distributor or distributors, and date or dates of distribution of a resource in a published form according to RDA. However, there are other approaches that organizations may use to manage the distribution of their resources:

• Digital Rights Management (DRM) – A type of technology used to control access to digital resources. It is used to limit access to resources such as text, software, music, and video files.
• Permissions Management System (PMS) – A system that helps organizations manage the rights associated with their resources. It helps organizations maintain control of the use and distribution of their resources.
• Copyright Management System (CMS) – A system that helps organizations manage the rights associated with their resources. It helps organizations maintain control of the use and distribution of their resources.
• Licensing Agreement – A legal agreement between two parties that outlines the rights and responsibilities associated with the use and distribution of a resource.

In summary, a Distribution statement is a statement identifying the place or places of distribution, distributor or distributors, and date or dates of distribution of a resource in a published form according to RDA. However, there are other approaches organizations may use to manage the distribution of their resources such as DRM, PMS, CMS, and Licensing Agreement.

References

• Australia Staff, (2012), Australian Master Tax Guide 2012, CCH Australia Limited, Sydney
• Joint Steering Committee, (2013) RDA: Resource Description and Access: 2013 Revision, American Library Association, Chicago
• Joudrey D, Taylor A, Miller D, (2015), Introduction to Cataloging and Classification, ABC-CLIO, Santa Barbara
• Taxpayers Australia Inc, (2014), The Taxpayers Guide 2014-2015, John Wiley & Sons, Milton

Author: Karolina Stankiewicz