As of December 31, 2024, 2023, and 2022, where is deferred revenue reported for Anago?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
The provision for income taxes for the years ended December 31, 2024, 2023, and 2022 is $496,448, $348,384, and $57,613, respectively. This includes for the year ending December 31, 2024, 2023, and 2022 current provision totaling $479,939, $216,922 and $99,694, respectively, and deferred benefit (provision) totaling $(16,509),($131,462),and$42,081, respectively.
For the year ended December 31, 2024, 2023, and 2022, the Company's effective income tax rate varied from statutory federal and state income tax rates principally due to non-deductible expenses and business meals and entertainment.
As of December 31, 2024, 2023, and 2022 the cumulative temporary differences includes a deferred tax assets (liability) associated with the tax returns which are filed based on the cash basis of accounting and the consolidated financial statements are reported based on the accrual basis of accounting and unrealized gain (loss) on investments totaled $65,045, $(49,347), and $82,115, respectively.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, deferred revenue related to income taxes is reported in Note L. For the years ending December 31, 2024, 2023, and 2022, the deferred benefit (provision) totaled $(16,509), ($131,462), and $42,081, respectively. These figures represent the difference between the current income tax provision and the total income taxes for those years.
This deferred tax asset (liability) arises from temporary differences in how Anago accounts for taxes. The tax returns are filed on a cash basis, while the consolidated financial statements are reported on an accrual basis. This means that revenue and expenses are recognized at different times for tax purposes compared to financial reporting purposes, leading to deferred tax implications.
For a prospective Anago franchisee, understanding these accounting nuances may require professional financial advice. While the specific amounts of deferred tax benefits or provisions may not directly impact day-to-day operations, they reflect the overall financial management and tax strategies of the Anago franchise system. Franchisees should be aware of how these accounting methods could indirectly affect the financial stability and long-term planning of the company.