What accounting principles were used in the financial statements that were audited for Beard Papas?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
The accounting and reporting policies of the Company conform to accounting principles generally accepted in United States of America ("U.S. GAAP").
The preparation of the financial statements in conformity with U.S. GAAP requires that management of the Company make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the period. Actual results could differ from those estimates.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the company's accounting and reporting policies conform to accounting principles generally accepted in the United States of America, which is abbreviated as "U.S. GAAP." This indicates that Beard Papas adheres to a standardized set of guidelines and practices when preparing its financial statements.
Adhering to U.S. GAAP ensures that Beard Papas's financial statements are presented in a consistent and transparent manner, allowing potential franchisees and other stakeholders to understand the company's financial performance and position. This also facilitates comparisons with other companies that follow the same accounting principles.
The FDD also notes that the preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that could affect the reported amounts of assets, liabilities, revenues, and expenses. Actual results may differ from these estimates. This is a standard disclosure, as all accounting frameworks require some level of estimation and judgment, which can introduce uncertainty into the financial reporting process.