Does the Aunt Millies Bakeries FDD include statements of comprehensive income?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
Marketable Securities: Interest and dividends from marketable securities are included in income as earned. Realized gains (losses) on sales of marketable securities are determined using the specific identification method. Unrealized holding gains and losses on available for sale securities are excluded from earnings and are reported as a separate component of other comprehensive income until realized.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Aunt Millies Bakeries FDD, the document mentions "other comprehensive income" in the context of marketable securities. Specifically, unrealized holding gains and losses on available for sale securities are excluded from earnings and reported as a separate component of other comprehensive income until they are realized.
This indicates that Aunt Millie's Bakeries' financial statements do consider comprehensive income, at least with respect to marketable securities. This is a standard accounting practice, as comprehensive income includes items that are not part of net income but still affect equity.
For a prospective franchisee, this suggests that Aunt Millie's Bakeries maintains its financial records in accordance with generally accepted accounting principles, which include the reporting of comprehensive income. However, the excerpt does not provide the full statements, so it is important to request and review the complete financial statements, including the statements of comprehensive income, to fully understand the company's financial performance and position.