Disclosure Analysis Paper Netflix is a company that lets people have access to movies both threw online access and digital video disc formats. Netflix has many different selections that people can choose from depending on their movie needs and their budgets. Netflix is traded publicly company that is currently trading at $353.50 per share according to the Bloomberg Business Week (Netflix Inc (NFLX:NASDAQ GS), 2014). There are many disclosures that are included in the financial statements. Netflix considers investments in instruments purchased with an original maturity of 90 days or less to be cash equivalents. Netflix obtains content through streaming content license agreements, digital video disc direct purchases and digital video disc revenue sharing agreements with various content providers. The content distribution rights in order to stream TV shows, movies and original programming to subscribers’ TVs, computers and mobile devices are obtained by Netflix. The amortization of the streaming content library is classified in “Cost of revenues” on the Consolidated Statements of Operations and in the line item “Amortization of streaming content library” within net cash provided by operating activities on the Consolidated Statements of Cash Flows. Costs related to subtitles, dubbing, and closed captioning are capitalized in “Current content library, net” on the Consolidated Balance Sheets and amortized over the window of availability. Netflix acquires digital video disc content for the purpose of renting such content to its subscribers and earning subscription rental revenues, and the Company considers its direct purchase digital video disc library to be a productive asset. Accordingly, Netflix classifies its digital video disc library in “Non-current content library, net” on the Consolidated Balance Sheets. The acquisition of digital
