How does Aunt Millies Bakeries review the carrying value of its property, plant, and equipment for impairment?

Based on the 2025 Aunt Millies Bakeries FDD, the document does not describe how the company reviews the carrying value of its property, plant, and equipment for impairment. The FDD does mention the company's accounting policies regarding property, plant, and equipment, stating that depreciation is calculated using the straight-line method over the estimated useful lives of the assets.

While the FDD outlines the method of depreciation, it does not provide details on how Aunt Millies Bakeries specifically assesses the carrying value of these assets for potential impairment. Impairment reviews are crucial to ensure that the recorded value of assets on the balance sheet accurately reflects their recoverable amount. Without this information, prospective franchisees cannot fully understand how the company manages and accounts for its long-term assets.

A prospective franchisee should seek clarification from Aunt Millies Bakeries regarding the specific procedures and criteria used to determine if an impairment loss should be recognized. Understanding the impairment review process is essential for assessing the financial health and stability of the company. This information would provide a more complete picture of Aunt Millies Bakeries' accounting practices and risk management related to its assets.