This excerpt taken from the OUTD 10-K filed Mar 30, 2007.
Principles of Consolidation
The consolidated financial statements include the accounts of Outdoor Channel Holdings and its subsidiaries, Gold Prospectors Association of America, Inc., Lost Dutchmans, 43455 BPD, LLC, GPAA and TOC. All material intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates, judgments and assumptions. We believe that our estimates, judgments and assumptions made when accounting for items and matters such as customer retention patterns, allowance for bad debts, useful lives of assets, asset valuations including cash flow projections, recoverability of assets, potential unasserted claims under contractual obligations, income taxes, reserves and other provisions and contingencies are reasonable, based on information available at the time they are made. These estimates, judgments and assumptions can affect reported amounts of assets and liabilities as of the dates of the consolidated balance sheet and reported amount of
OUTDOOR CHANNEL HOLDINGS, INC. AND SUBSIDIARIES