“All of our dreams can come true, if we have the courage to pursue them'. This is what Walter Elias “Walt” Disney believed when he created his Disney brand in 1923. What started out as an silent animation film company, later grew into the largest media conglomerate in the world in terms of revenue. The recent acquisitions of companies such as ESPN, Pixar, and Marvel are a few of many profitable ventures that are owned by Disney. In this paper I'll be reviewing Disney 2011 annual report, current business operations and further business opportunities .
The main sections of an annual report include the financial statements, the managements discussion and analysis, notes to the financial statements, and a auditors report.
Financial statements consists of four different statements. The income statements reports a ...view middle of the document...
The notes to the financial clarify the four financial statements and provide additional information. Lastly the auditors report is prepared by an outside auditor to make sure the company is following the general accepted accounting principles and also complying with SEC regulations.
In 2011 revenue for Disney increased by 7% or 2.8 billion dollars. The sale of one of the companies top preforming assets Miramax helped with the increase in revenue. Higher revenues from cable networks, such as The Lifetime Channel, ESPN,The Disney Channel amongst many more provided substantial revenues for 2011. Increased guests at domestic parks and resorts, lower film cost, decreased programming and production costs, and the arrival of Pixar and Marvel all played significant roles in the success of Disney in 2011.
A vast enterprise such as Disney has hundreds of assets within the company. These assets range from media networks like ESPN, ABC family network, A&E, and resorts and theme parks worldwide. Radio stations, retail stores, production companies as well as properties across the United States and around the world.
Disney characterizes its internal control as being designed to provide reliable financial reporting and preparation for external users in accordance with general accepted accounting principles. The report also states that because of limitations, internal control over financial reporting may not prevent or detect errors and misstatements. Also projections of future periods are subject to change due to economic conditions.
In conclusion Disney has displayed success in every aspect of business,from network television, blockbuster movies, fun-filled theme parks all the way down to comic books. This annual report shows that success is not only a current state of affairs but also a sign for things to come.