What is the basis of presentation for Angry Chickz's financial statements?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Basis of presentation – The Company's financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The Company believes this information includes all adjustments, consisting of normal recurring accruals, necessary to fairly present the financial condition. References to ASC and ASU included hereinafter refer to the Accounting Standards Codification and Accounting Standards Update, respectively, established by the Financial Accounting Standards Board (FASB) as the source of authoritative U.S. GAAP.
Use of estimates – The preparation of the financial statements, in accordance with U.S. GAAP, requires that management makes certain estimates and assumptions. These estimates and assumptions affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities as of the balance sheet date. The actual results could differ significantly from those estimates.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the company's financial statements are prepared following accounting principles generally accepted in the United States of America (U.S. GAAP). This means that Angry Chickz adheres to a standardized set of rules and guidelines when reporting its financial information. The company also believes that all necessary adjustments, including normal recurring accruals, have been included to fairly present its financial condition.
Furthermore, Angry Chickz utilizes estimates and assumptions made by its management during the preparation of these financial statements. These estimates can affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities as of the balance sheet date. Because these are estimates, the actual results could potentially differ significantly.
For a prospective franchisee, this indicates that Angry Chickz aims to provide a transparent and reliable view of its financial standing, adhering to widely recognized accounting standards. However, it is important to recognize that the financial statements involve management's estimates, which may not perfectly predict actual outcomes. Reviewing these statements and understanding the underlying assumptions is a crucial part of assessing the financial health and stability of Angry Chickz as a franchise opportunity.