Accounting for Middle Earth: Jackson and New Line Cinema Bury the Hobbit Hatchet

"Lord of the Kings" director Peter Jackson and distributor New Line Cinema have settled their legal dispute related to Jackson's compensation for the "Lord of the Rings" movie series. Additionally, Jackson has agreed to produce two additional movies for New Line, one of which will be based on Tolkien's "The Hobbit." A judge had previously rejected New Line's motion to dismiss and required keeping of e-mails related to the suit.

"Lord of the Rings" fans will doubtlessly be thrilled by this decision. The case illustrates the significance of accounting in ways that most people would not see as connected to accounting.