What accounting standard did All Team adopt in 2019?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
vertising expense for the years ended December 31, 2024 and 2023 were $2,771 and $446, respectively. For the years ended December 31, 2024 and 2023
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Concentrations of Credit Risk
The Company maintains demand deposits with a financial institution located in Tampa, Florida. Accounts are insured by the Federal Deposit Insurance Corporation up to $250,000 in total. Uninsured balances aggregated $370,793 and $767,656 at December 31, 2024 and 2023, respectively.
Intangible Assets
Intangible assets are recorded at cost. Prior to December 31, 2002, amortization was on a straightline basis over 40 years. On January 1, 2002, the Company adopted Statement of Financial Accounting Standards (SFAS 142), which requires that intangibles with a definite useful life be amortized over that life. SFAS 142 is now referred to as Financial Accounting Standard Board Accounting Standards Codification (FASB ASC 360, Intangibles-Goodwill and Other) and requires that long-lived assets be evaluated to determine if the fair value of the asset exceeds the carrying value of the assets for the purposes of recognizing an impairment loss.
Fixed Assets
Fixed asse
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
Based on the 2025 All Team Franchise Disclosure Document, the information provided does not specify any accounting standard adopted by All Team in 2019. However, Note 2, titled "Summary of Significant Accounting Policies (Continued)" does detail some accounting standards adopted by All Team.
Specifically, the note mentions that on January 1, 2002, All Team adopted Statement of Financial Accounting Standards (SFAS 142). This standard requires that intangibles with a definite useful life be amortized over that life. SFAS 142 is now referred to as Financial Accounting Standard Board Accounting Standards Codification (FASB ASC 360, Intangibles-Goodwill and Other) and requires that long-lived assets be evaluated to determine if the fair value of the asset exceeds the carrying value of the assets for the purposes of recognizing an impairment loss.
As a prospective franchisee, it would be prudent to ask All Team's franchisor directly about any accounting standards adopted in 2019 and the reasons for their adoption. Understanding the financial reporting practices of All Team is essential for assessing the financial health and stability of the franchise system.