What accounting standards must Afuri Ramen Dumpling's financial statements adhere to?

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the company's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, also known as U.S. GAAP. This indicates that Afuri Ramen Dumpling adheres to a standardized set of accounting rules and guidelines when preparing its financial statements.

For a prospective franchisee, this means that the financial information provided by Afuri Ramen Dumpling is presented in a consistent and transparent manner, making it easier to understand and compare with other franchise opportunities. Adherence to U.S. GAAP ensures that the financial statements include all necessary disclosures and are prepared using recognized accounting methods. This can provide a level of confidence in the reliability and accuracy of the financial data presented.

Furthermore, the FDD includes reports from independent auditors who have audited Afuri Ramen Dumpling's financial statements. These auditors express an opinion on whether the financial statements present fairly the company's financial position and results of operations in accordance with U.S. GAAP. This external audit provides an additional layer of assurance for potential franchisees, as it confirms that the financial statements have been reviewed by an independent third party and found to be in compliance with the required accounting standards.