What accounting standards did ASC 606 amend for All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
In 2019, the Company adopted ASC 606, Revenue from Contracts with Customers, which amended the existing accounting standards for revenue recognition. Consequently, the Company recognizes revenue when the services are provided, persuasive evidence of an arrangement exists, the price is fixed and collection is reasonably assured in accordance with ASC 606.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, in 2019, All Team adopted ASC 606, Revenue from Contracts with Customers. This adoption amended the existing accounting standards for revenue recognition. As a result, All Team recognizes revenue when the services are provided, there is persuasive evidence of an arrangement, the price is fixed, and collection is reasonably assured, all in accordance with ASC 606.
For a prospective All Team franchisee, this means that the way All Team accounts for revenue changed in 2019 to comply with the updated accounting standards. This change ensures that All Team recognizes revenue in a manner that reflects when it has transferred goods or services to customers and in an amount that reflects what All Team expects to receive in exchange for those goods or services.
It is important for franchisees to understand these accounting policies, as they can affect how All Team reports its financial performance. Franchisees may want to consult with a financial advisor to fully understand the implications of ASC 606 on All Team's financial statements.