Problem:
Go to the website of Walt Disney Studios at https://corporate.disney.go.com. Click on Investor Relations and then Financial Information and Filings. Open the most recent Annual Report. Find the Consolidated Balance Sheets and examine the line item, "Film and television costs." Also, find the supplemental section on Accounting Policies and Estimates and read the paragraphs under "Film and Television Revenues and Costs."
When does Disney recognize its film and television costs on its income statement? Does Disney use a job order costing system to account for film and television costs? What leads you to that conclusion?