What is the significance of December 31st for Afuri Ramen Dumpling's financial reporting?
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 Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, December 31st is the date the company uses to mark the end of its financial year. This date is significant because the company's financial statements, including the balance sheet, statements of operations, changes in stockholder's equity, and cash flows, are all reported as of this date.
The notes to the financial statements provide additional details about Afuri Ramen Dumpling's financial status at the end of each year. For example, the number of operating and planned franchise restaurants both within and outside the United States are specified as of December 31st for the years 2020, 2021, 2022 and 2023. This information gives prospective franchisees a clear picture of the company's growth and financial health at these specific points in time.
The independent auditor's report also references December 31st as the date for which they have audited the financial statements, ensuring that they fairly represent the company's financial position as of that date. Furthermore, details such as advertising expenses, management fees, and accounts receivable balances are also specified for the years ending on December 31st, offering a comprehensive view of the company's financial activities and obligations.