Are the financial statements for Afuri Ramen Dumpling presented on a calendar year basis?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
We have audited the accompanying financial statements of Afuri Franchise, Inc. (the "Company"), which comprise the balance sheet as of December 31, 2023, and the related statements of operations, changes in stockholder's equity, and cash flows for the year then ended, 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, 2023, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").
Source: Item 21 — Financial Statements (FDD pages 49–50)
What This Means (2024 FDD)
According to the 2024 FDD, the financial statements for Afuri Ramen Dumpling are presented on a calendar year basis. Specifically, the balance sheets are as of December 31, 2023, December 31, 2021 and 2020, and the related statements of operations, changes in stockholder's equity, and cash flows are for the years then ended. This indicates that the company's financial reporting aligns with the calendar year, which is a common practice for businesses.
For a prospective franchisee, this means that Afuri Ramen Dumpling's financial performance is assessed and reported annually, coinciding with the end of the calendar year. This allows for straightforward comparisons of financial data across different years and aligns with standard accounting practices. Franchisees can expect to receive annual financial reports that cover the period from January 1 to December 31.
The independent auditors' reports also reference these dates, confirming that the audits were conducted on financial statements prepared for the years ending on these December 31st dates. This consistency in reporting periods provides a clear and consistent view of the company's financial health and performance over time.