In the US, movie production costs aren't expensed in the period when incurred. They're capitalized, and then amortized over time. So the last sentence of your

In the US, movie production costs aren't expensed in the period when incurred. They're capitalized, and then amortized over time. So the last sentence of your comment is spot on. Writing off an asset causes a reduction in net assets, which translates into a loss on the income statement.