When did Auntie Annes adopt Accounting Standards Codification (ASC) 326?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
In June 2016, the Financial Accounting Standards Board issued Accounting Standards Codification ("ASC") 326 – Financial Instruments – Credit Losses ("ASC 326") requiring companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to estimate credit losses. Financial assets held by the Company that are subject to the guidance in ASC 326 are accounts and notes receivable. The Company adopted this standard on December 26, 2022. The adoption did not have a material impact on the Company's consolidated financial statements.
Source: Item 23 — RECEIPTS (FDD pages 106–366)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the company adopted Accounting Standards Codification (ASC) 326 on December 26, 2022. This standard, issued by the Financial Accounting Standards Board in June 2016, relates to Financial Instruments – Credit Losses.
The adoption of ASC 326 requires Auntie Annes to measure credit losses using a methodology that reflects expected credit losses. This involves considering a broader range of information to estimate these losses, particularly concerning financial assets like accounts receivable.
However, the FDD states that the adoption of this standard did not have a material impact on Auntie Annes's consolidated financial statements. This suggests that while the company implemented the new accounting guidance, it did not significantly alter their reported financial position or results.