Under what accounting principles are All County's financial statements prepared?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company's policy is to prepare its financial statements on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Revenues are recognized when earned, and expenses are recognized as they are incurred.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America. This is explicitly stated in Note 2, which summarizes the significant accounting policies used by All County. The company uses the accrual basis of accounting, where revenues are recognized when earned, and expenses are recognized when incurred.
This adherence to generally accepted accounting principles (GAAP) ensures that All County's financial statements are presented fairly and consistently, allowing prospective franchisees to make informed decisions based on reliable financial information. The independent auditor's report also confirms that the financial statements present fairly the financial position of All County in conformity with these accounting principles.
Furthermore, the FDD mentions the adoption of ASC Topic 606, Revenue from Contracts with Customers, with an initial application date of January 1, 2020. All County applied this topic using the cumulative effect method, adjusting the opening balance of equity at that date. The disclosure clarifies that the adoption of ASC 606 did not have a material impact on the company's statements of income or balance sheets for the fiscal year ended December 31, 2024.