According to what accounting principles are Alloy's financial statements prepared?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of accounting
The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the company prepares its financial statements following accounting principles generally accepted in the United States of America, also known as U.S. GAAP. This is explicitly stated in Note 2, which summarizes the significant accounting policies used by Alloy.
Using U.S. GAAP means that Alloy's financial reporting adheres to a standardized framework, ensuring consistency and comparability with other companies' financial statements. This framework covers various aspects of financial reporting, including revenue recognition, expense matching, and asset valuation.
For a prospective franchisee, this adherence to U.S. GAAP provides a level of assurance that the financial information presented by Alloy is reliable and transparent. It allows potential franchisees to make informed decisions based on a clear understanding of Alloy's financial performance and position. Furthermore, the use of U.S. GAAP facilitates easier comparison with other franchise opportunities, as it provides a common basis for evaluating financial data.