For Beard Papas, what is management responsible for in relation to the preparation and presentation of financial statements?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date that the financial statements are available to be issued.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas FDD, the company's management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America. This includes designing, implementing, and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, Beard Papas' management is required to evaluate whether there are conditions or events that raise substantial doubt about the company's ability to continue as a going concern for one year after the date that the financial statements are available to be issued. This assessment is crucial for stakeholders to understand the company's financial stability and long-term viability.
This responsibility ensures that the financial information provided to potential franchisees and other stakeholders is reliable, accurate, and compliant with established accounting standards. Prospective franchisees should be aware that the accuracy and reliability of these financial statements are predicated on the effectiveness of Beard Papas' internal controls and management's diligent oversight.