STUDIO SHAME! Even Harry Potter Pic Loses Money Because Of Warner Bros’ Phony Baloney Net Profit Accounting – Deadline.com
Wikipedia also has a great writeup on how Hollywood Accounting works.
Interesting post on what happens when first time directors (or unknown directors) fail to shine when they get their big break.
The most interesting thing I got from the story was how Hollywood almost encourages this behavior by building up the new director (stuff like telling him he's going to be the next Scorsese) before even seeing any of his work. And how all that praise basically made his movie terrible because he bought into the hype and thought he could do no wrong.