Do the accounting policies of Bang Cookies conform to generally accepted accounting principles?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
This summary of significant accounting policies is presented to assist the reader in understanding and evaluating the Company's financial statements. The financial statements and notes are representations of the Company's management, which is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of financial statements.
A. Basis of Accounting
The Company's financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP").
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the company's accounting policies do conform to generally accepted accounting principles (GAAP). The financial statements and related notes are the responsibility of the company's management, ensuring their integrity and objectivity. These policies have been consistently applied when preparing the financial statements.
The FDD includes an Independent Auditor's Report from Metwally CPA PLLC, which states that the financial statements of Bang Cookies Franchise, LLC, which include the balance sheet as of December 31, 2023, and the related statements of operations, members' equity, and cash flows for the period from January 19, 2023, to December 31, 2023, are presented fairly in accordance with accounting principles generally accepted in the United States of America.
An audit was conducted based on auditing standards generally accepted in the United States of America, providing a reasonable basis for the auditor's opinion. This indicates that an independent firm has reviewed Bang Cookies' financial statements and found them to be in compliance with GAAP. For a prospective franchisee, this suggests that Bang Cookies maintains transparent and reliable financial reporting practices, which can be crucial for making informed investment decisions.