What was the intangible assets amount for Afuri Ramen Dumpling in the provided financial data?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
Intangible asset – Website development is stated at cost less accumulated amortization. Amortization is recorded using the straight-line method over the estimated useful lives of the respective assets (3 years). The intangible asset was not placed in service as of December 31, 2021, thus there was no accumulated amortization at December 31, 2021.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the intangible asset, specifically website development, is stated at cost less accumulated amortization. Amortization is recorded using the straight-line method over an estimated useful life of 3 years. As of December 31, 2021, the intangible asset had not been placed in service, resulting in no accumulated amortization.
This means that for prospective Afuri Ramen Dumpling franchisees reviewing the financial statements as of December 31, 2021, the balance sheet would reflect the initial cost of website development without any reduction for amortization. This is because the asset was not yet in use.
It's important to note that this information pertains specifically to the financial year 2021. For subsequent years, the financial statements would reflect the amortization expense recognized each year as the website is used. Reviewing more recent financial statements would provide a more complete picture of how intangible assets impact Afuri Ramen Dumpling's financial position over time.