Disney Audit

The Walt Disney Company is a diversified worldwide entertainment company. The company generates revenue through five segments, Media Networks, Parks and Resorts, Interactive Media, Consumer Products, and Studio Entertainment. Disney operates television networks such as ABC, ABC Family, ESPN, and of course its own Disney Channel. It also owns and manages the Disney Resorts as well as theme parks internationally. There are many different accounting policies that exist within the company, but some seem much more significant than others. One major accounting policy for the company lies within the Film and Television Revenues and Costs. This policy discusses how the company records television production cost as well as how estimates for the Ultimate Revenue, or estimated remaining total revenue, is created. Another policy is the Revenue Recognition, where the company discusses how and when they record revenue. For example, the company records the sale of the advanced theme park tickets when it is used instead of sold. Allowance for Doubtful Accounts also has a policy of its own, which discusses how and when they estimate allowance for doubtful accounts. Being a big company Disney never let go of one of the management most important goal which is customer service. Making sure that customers are getting what they want and allowing them to have great service is one of the most important strategies. Also having the most determined and enthusiastic leaders is part of their strategy.
Walt Disney is part of few different industries. In other words its competitors are other TV channels, theme parks, and hotels. The theme park and resorts industry has growth of 1.1 percent a year. The growth of the industry as a whole had lost much revenue and profits during the recession. Weather conditions can also be a significant factor within this industry, such as when it’s cold or raining people would not attend on those days. There are many economic factors that affect this