In the context of the business combination involving Anytime Fitness and its subsidiaries, including Basecamp Fitness, what accounting standard is referenced regarding the election not to apply pushdown accounting?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, the accounting standard referenced regarding the election not to apply pushdown accounting in the business combination involving Anytime Fitness and its subsidiaries is ASC 805, Business Combinations. The document states that the company has elected not to apply pushdown accounting and has prepared the financial statements on a historical basis.

This means that the acquisition of OTFF and OTFPS to Anytime Fitness has been accounted for as a business combination between entities under common control, and therefore, there was no step up to fair value. The results for this transfer are included in the company's results of operations from April 2, 2024, which is the date of common control.

For a prospective Basecamp Fitness franchisee, this information is relevant because it provides insight into how Anytime Fitness, the parent company, accounts for business combinations and acquisitions. Understanding the accounting practices can help franchisees assess the financial stability and reporting transparency of the parent company, which indirectly affects the Basecamp Fitness franchise system. The election not to apply pushdown accounting suggests that the assets and liabilities of the acquired entities are not revalued to their fair market values on the acquisition date, maintaining their historical values in the consolidated financial statements.