What accounting update did Baymont Inn Suites adopt on January 1, 2024, and what is the topic of this update?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
In November 2023, the FASB issued an accounting update,Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures("2023 Accounting Update"), which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company adopted the guidance on January 1, 2024, and applied the guidance retrospectively to all prior periods presented in the financial statements. See Note 15 - Segment Information for new disclosures.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, the company adopted an accounting update related to segment reporting on January 1, 2024. Specifically, in November 2023, the FASB issued an accounting update called Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.
This update is intended to improve the disclosure requirements for reportable segments, focusing on enhanced disclosures regarding significant segment expenses. Baymont Inn Suites applied this guidance retrospectively to all prior periods presented in the financial statements.
Prospective franchisees can find further details about these changes in Note 15 - Segment Information within the financial statements included in the FDD. This accounting change primarily affects how Baymont Inn Suites reports its financial segments and related expenses, which may be relevant for franchisees in understanding the overall financial structure and performance of the Baymont Inn Suites franchise system.