What accounting standard does All Dogs Unleashed follow regarding uncertain tax positions?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
In accordance with FASB ASC 740-10, Income Taxes, the Company is required to disclose uncertain tax positions. Income tax benefits are recognized for income tax positions taken or expected to be taken in a tax return, only when it is determined that the income tax position will more-likely-than-not be sustained upon examination by taxing authorities.
The Company has analyzed tax positions taken for filing with the Internal Revenue Service and all state jurisdictions where it operates. The Company believes that income tax filing positions will be sustained upon examination and does not anticipate any adjustments that would result in a material adverse effect on the Company's financial condition, results of operations or cash flows. Accordingly, the Company has not recorded any reserves, or related accruals for interest and penalties for uncertain income tax positions at December 31, 2024 and 2023.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, the company adheres to FASB ASC 740-10, Income Taxes, when disclosing uncertain tax positions. This standard dictates that income tax benefits are acknowledged for tax positions taken (or expected to be taken) on a tax return only when it is more likely than not that the position will be upheld upon examination by tax authorities.
All Dogs Unleashed has analyzed its tax positions for filings with the IRS and state jurisdictions where it operates. The company believes that its income tax filing positions will be sustained upon examination. As a result, All Dogs Unleashed does not anticipate any adjustments that would materially and adversely affect its financial condition, results of operations, or cash flows.
Therefore, as of December 31, 2024 and 2023, All Dogs Unleashed has not recorded any reserves or related accruals for interest and penalties related to uncertain income tax positions. This indicates that All Dogs Unleashed believes its tax positions are sound and defensible, which can provide a level of financial stability and predictability for potential franchisees.