How does Beard Papas handle the accounting when assets are retired or disposed of?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
2. Summary of Significant Accounting Policies
Basis of Presentation
The accounting and reporting policies of the Company conform to accounting principles generally accepted in United States of America ("U.S. GAAP").
Use of Estimates
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.
Revenue Recognition
Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflect the consideration the Company expects to receive in exchange for those products or services.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the FDD does not provide specific details on how Beard Papas accounts for the retirement or disposal of assets. The document includes general accounting policies, but it does not go into the specifics of asset retirement or disposal.
However, the FDD does mention that the company's accounting and reporting policies conform to accounting principles generally accepted in the United States of America (U.S. GAAP). This means that Beard Papas would follow standard accounting practices when dealing with asset retirement or disposal.
A prospective franchisee should ask Beard Papas' franchisor for detailed information on the specific accounting procedures used for asset retirement or disposal. This would include how gains or losses on disposal are calculated and recorded, as well as any specific policies or procedures that franchisees must follow.