Comcast 2013 Annual Report Download - page 91

Table of Contents
Comcast Corporation
Note 2: Accounting Policies
Our consolidated financial statements are prepared in accordance with GAAP, which requires us to select accounting policies,
including in certain cases industry-
specific policies, and make estimates that affect the reported amount of assets, liabilities,
revenue and expenses, and the related disclosure of contingent assets and contingent liabilities. Actual results could differ from
these estimates. We believe the judgments and related estimates for the following items are critical in the preparation of our
consolidated financial statements:
In addition, the following accounting policies are specific to the industries in which we operate:
Information on our other accounting policies or methods related to our consolidated financial statements are included, where
applicable, in their respective footnotes that follow. Below is a discussion of accounting policies and methods used in our
consolidated financial statements that are not presented within other footnotes.
Revenue Recognition
Cable Communications Segment
Our Cable Communications segment generates revenue primarily from subscriptions to our video, high-
speed Internet and voice
services (“cable services”)
and from the sale of advertising. We recognize revenue from cable services as each service is provided.
Customers are typically billed in advance on a monthly basis. We manage credit risk by screening applicants through the use of
internal customer information, identification verification tools and credit bureau data. If a customer’
s account is delinquent, various
measures are used to collect outstanding amounts, including termination of the customer’
s cable services. Since installation
revenue obtained from the connection of customers to our cable systems is less than related direct selling costs, we recognize
revenue as connections are completed.
As part of our distribution agreements with cable networks, we generally receive an allocation of scheduled advertising time that we
sell to local, regional and national advertisers. We recognize advertising revenue when the advertising is aired. In most cases, the
available advertising time is sold by our sales force. In some cases, we work with representation firms as an extension of our sales
force to sell a portion of the advertising time allocated to us. We also represent the advertising sales efforts of other multichannel
video providers in some markets. Since we are acting as the principal in these arrangements, we report the advertising that is sold
as revenue and the fees paid to representation firms and multichannel video providers as other operating and administrative
expenses.
Revenue earned from other sources is recognized when services are provided or events occur. Under the terms of our cable
franchise agreements, we are generally required to pay to the franchising authority an amount based on our gross video revenue.
We normally pass these fees through to our cable customers and classify the fees as a component of revenue with the
corresponding costs included in other operating and administrative expenses.
•
valuation and impairment testing of cable franchise rights (see Note 8)
•
film and television costs (see Note 5)
•
income taxes (see Note 15)
•
capitalization and amortization of film and television costs (see Note 5)
•
customer installation costs in our Cable Communications segment (see Note 7)
Comcast 2013 Annual Report on Form 10
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K
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