What date did Afuri Ramen Dumpling management review subsequent events through?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
Going concern – The Company adheres to the provisions of the Financial Accounting Standards Board Accounting Standards Codification 205, subtopic 40, which extends the responsibility for performing the going concern evaluation to management based on relevant conditions and events that are known and reasonably knowable at the time the financial statements are available to be issued. Management has assessed the Company's ability to continue as a going concern for the period of one year from April 8, 2022, and does not believe any existing conditions or events raise substantial doubt about the Company's ability to continue as a going concern.
Subsequent events - Management has reviewed subsequent events through April 8, 2022, the date which the report was available to be issued.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, management reviewed subsequent events through April 8, 2022. This date is significant because it represents the cutoff for incorporating information about events that occurred after the balance sheet date (December 31, 2021) but before the financial statements were issued.
For a prospective Afuri Ramen Dumpling franchisee, this means the financial statements may not reflect events that occurred after April 8, 2022. Subsequent events could include anything that materially impacts the company's financial position, such as a major new agreement, a significant loss, or a change in financing.
It is important to note that the auditor's report included with the financial statements provides an opinion on whether the financial statements present fairly the company's financial position as of a specific date (December 31, 2021 in this case) and the results of its operations and cash flows for the year then ended. The subsequent events review provides additional assurance that the financial statements are complete and accurate up to the review date.