The company I have chosen is the Walt Disney Company. The
company's stock is publicly traded on the stock market under the
stock ticker DIS. The Walt Disney Company trades under the Cable
industry and other pay T.V. services. The Walt Disney Company is
one of the world's largest leading forces in the entertainment
industry. Disney is known for bringing fantasy and fun to families
through its amusement parks, television series, and several live
action/animated motion pictures. Disney has also gained success
through its acquisition of several other companies as well as through
its sales of its products in its stores, and most recently through the
development and launch of Disney's digital streaming services. The
Walt Disney Company lists construction in progress on their balance
sheet within the property, plant, and equipment line. This can be one
of the largest fixed asset accounts. Costs are accumulated in the
construction in progress account, but depreciation does occur
because it has not yet been placed in service. It is not depreciated
until once the asset is placed in service and shifted to its final fixed
asset account. I believe listing construction in progress on the balance
sheet is wise. "It gives a clear vision to the company for its future
costs. The construction work in progress helps to control unwanted
costs. The construction work in progress account measures all the
expenses and allows its users to prevent wastage of money in various
areas. They help the management to control its risk factors for future
events" (Thakur, 2022). The true picture of Disney's financial position
is depicted.
Construction Work in Progress - Definition & Examples
(wallstreetmojo.com)
