Accounting: Disney Company

Disney Company
Name
Institutional Affiliation
Disney Company
Section 2
Disney Company makes money through its four major business segments that are: Media networks, studio entertainment, parks and resorts, consumer products and interactive media. Media networks such as ESPN, Disney, National Geographic, ABC and parks and resorts are the key sources of revenue for Disney. These two segments earn the company over 20 billion dollars annually. Studio entertainment generates the third-largest revenue for Disney and includes popular movies such as Black Panther and Toy Story 3. Disney spends a significant portion of its budget on amusement parks. It invests heavily and expanding and revamping its parks and resorts. It is spending around 24 billion dollars on expanding its six theme parks across the world. This includes creating new attraction sites and hotels in its theme parks.
Section 3
The biggest competitors for Disney include Warner Media, Sony, Comcast and ViacomCBS.
Section 4
Some of the risks Disney faces is the loss of subscribers from their media networks such as ESPN. The high cable fees cause many viewers to shift to streaming sites. Disney faces stiff competition from its major rivals such as Time Warner and Comcast, so it risks losing part of its market share. Another risk factor is the decline in economic conditions in the US and other major regions such as Europe and Asia. They risk losing revenue which will affect their profitability. Disney also faces the risk of data breaches in its information systems. It is also costly to maintain its information security systems.
Section 5
The concept that management is responsible for internal controls over-reporting. They must ensure that all the financial statements are authentic and true. The second concept is that Internal controls ensure that the financial statements and documents prepared are reliable and follow the standard accounting rules. In this way, they assure external sources of the financial health of the company. Third, COSO's Internal Control-Integrated Framework provides a platform to evaluate a company’s internal control systems which is a concept learnt in class.
Section 6
Disney’s annual report demonstrates the following concepts. First, the report states that their internal control over financial reporting was audited by PricewaterhouseCoopers LLP, which is an independent registered public accounting firm. This demonstrates the significance of large corporations using independent professional bodies to check authenticity financial statements. It prevents any manipulation by internal forces. Second, the auditor addresses the Board of directors and shareholders of Walt Disney Company, stating they have audited the consolidated financial statements for the period ended September 18 2019. They give the opinion that these statements conform to the generally accepted accounting standards in the USA. For example, they state "in our opinion, the Company maintained, in all material respects, effective internal
control over financial reporting as of September 28, 2019, based on criteria established in Internal Control – Integrated Framework (2013) issued by the COSO.” These examples highlight the role of an au...