In Aerus's financial statements, what is the purchase timeframe that qualifies a highly liquid investment as a cash equivalent?

According to Aerus's 2025 Franchise Disclosure Document, the company considers highly liquid investments with an original maturity of three months or less to be cash equivalents for the purposes of the statements of cash flows. This accounting practice is detailed in the notes to Aerus's financial statements as of December 31, 2024.

For a prospective franchisee, this definition is important because it affects how Aerus reports its cash flow. By classifying short-term, highly liquid investments as cash equivalents, Aerus provides a clearer picture of its immediate financial resources. This is a standard accounting practice, as it reflects the ease with which these investments can be converted into cash.

It is important to note that this definition is specific to the statement of cash flows. Other financial statements may treat these investments differently. Understanding this accounting policy helps potential franchisees better interpret Aerus's financial statements and assess the company's financial health.