For All States M.E.D., what does the company review regarding its long-lived assets?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
h**)** Long-Lived Assets
The Company reviews the carrying value of its long lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. No adjustment has been provided for in the financial statements.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to the 2024 All States M.E.D. Franchise Disclosure Document, the company reviews the carrying value of its long-lived assets for possible impairment. This review is triggered whenever events or changes in circumstances suggest that the recorded value of these assets may not be recoverable.
In simpler terms, All States M.E.D. assesses whether the value listed for its long-term assets (like equipment or property) on its balance sheets still accurately reflects their actual worth. This is done to ensure that the assets are not overvalued. Events that might trigger such a review could include a significant drop in market value, technological obsolescence, or damage to the asset.
The FDD states that no adjustment has been provided for in the financial statements. This means that as of the date of the financial statements, All States M.E.D. did not identify any impairment requiring a write-down of its long-lived assets. However, this does not guarantee that impairment will not occur in the future, and All States M.E.D. will continue to monitor these assets for potential impairment.