When did All Team adopt ASC 606?
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, All Team adopted ASC 606, Revenue from Contracts with Customers, in 2019. This accounting standard amended the existing standards for revenue recognition. As a result, All Team recognizes revenue when services are provided, there is persuasive evidence of an arrangement, the price is fixed, and collection is reasonably assured.
For a prospective franchisee, this means that All Team's financial statements reflect revenue recognition practices in accordance with ASC 606. This standard provides a framework for determining when and how revenue is recognized, which can impact the reported financial performance of the company. Understanding the implications of ASC 606 can help franchisees better interpret All Team's financial statements and assess the company's revenue recognition policies.
It is important for potential franchisees to be aware of the accounting policies used by All Team, as these policies can affect the reported financial results. By adopting ASC 606, All Team aims to provide a more transparent and consistent approach to revenue recognition, which can help franchisees make informed decisions about their investment.