Comcast 2014 Annual Report Download - page 95

Table of Contents
Comcast Corporation
Basis of Presentation
The accompanying consolidated financial statements include all entities in which we have a controlling voting interest
(“subsidiaries”) and variable interest entities (“VIEs”)
required to be consolidated in accordance with generally accepted accounting
principles in the United States (“GAAP”).
We translate assets and liabilities of our foreign subsidiaries where the functional currency is the local currency, primarily the euro
and the British pound, into U.S. dollars at the exchange rate as of the balance sheet date and translate revenue and expenses
using average monthly exchange rates. The related translation adjustments are recorded as a component of accumulated other
comprehensive income (loss). Any foreign currency transaction gains and losses are included in our consolidated statement of
income.
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 that 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 based on the services and features they receive and the type of
equipment they use. 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 the 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 on
cable networks that our Spotlight business sells to local, regional and national advertisers.
•
valuation and impairment testing of cable franchise rights (see Note 9)
•
film and television costs (see Note 6)
•
income taxes (see Note 15)
•
capitalization and amortization of film and television costs (see Note 6)
•
installation costs for connecting customers to our cable systems (see Note 8)
Comcast 2014 Annual Report on Form 10
-
K
90