Regarding Aerus' financial statements, what accounting principles must they conform to?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
f Cash Flows | 6 | | Notes to Financial Statements | 7 |
Independent Auditor's Report
To the Board of Directors and Members of Aerus Franchising, LLC Dallas, Texas
Opinion
We have audited the accompanying financial statements of Aerus Franchising, LLC (the "Company") (a Delaware limited liability company), which comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of income, members' equity, and cash flows for each of the three years in the period ended December 31, 2024, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud of error.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, the company's financial statements must conform to accounting principles generally accepted in the United States of America.
Specifically, the Independent Auditor's Report states that the financial statements of Aerus Franchising, LLC, fairly present the company's financial position as of December 31, 2024 and 2023, and the results of its operations and cash flows for the three years ending December 31, 2024, in accordance with these accounting principles. Management is responsible for preparing these financial statements and maintaining internal controls relevant to ensure they are free from material misstatement.
Furthermore, the notes to the financial statements mention that the preparation of these statements requires management to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from these estimates. The company also follows ASC Topic 740, Income Taxes, relating to unrecognized tax benefits. Aerus's income tax filings are subject to audit by taxing authorities, with open audit periods spanning from 2021 to 2024.