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Q. Summary of significant accounting policies?
As part of their annual reports companies comprise summaries of significant accounting policies. These policies help users in interpreting the financial statements. To a large extent accounting theory conclude the nature of these policies. Companies should follow generally accepted accounting principles in preparing their financial statements.
The accounting policies of The Walt Disney Company one of the world's leading entertainment companies since contained in a recent annual report follow. Subsequent to each the section of this text where we discuss that particular policy is in parentheses. While some of the items have already been covered the remainder present a preview of the concepts explained in later section.
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