In the context of Aw's financial statements, what is the company's process for evaluating subsequent events?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
7. SUBSEQUENT EVENTS
The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or nonrecognized subsequent events that would have required further adjustment or disclosure in the financial statements. Subsequent events were evaluated though April 10, 2025, the time at which the financial statements were available to be issued.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the company has a defined process for evaluating subsequent events related to its financial statements. Aw evaluates events that occur after the balance sheet date but before the financial statements are issued.
Based on their evaluation, Aw determines whether any of these events require further adjustment or disclosure in the financial statements. In the specific financial statements provided, Aw states that they did not identify any recognized or nonrecognized subsequent events that would have required further adjustment or disclosure.
For the financial statements ending December 31, 2023, subsequent events were evaluated through April 10, 2025, which was the date the financial statements were available to be issued. For the financial statements ending December 31, 2022, subsequent events were evaluated through June 6, 2024, the date the financial statements were available to be issued. This means that Aw considered events occurring between the end of the fiscal year and these respective dates to ensure the accuracy and completeness of the financial reporting.