What accounting principles must Beehive Homes' financial statements adhere to?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
nancial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Bee Hive Homes, Inc. as of December 31, 2024, 2023, and 2022, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Bee Hive Homes, Inc.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the company's financial statements must adhere to accounting principles generally accepted in the United States of America. This is a standard practice, ensuring uniformity and comparability in financial reporting across different businesses. These principles, often referred to as GAAP, are a common benchmark for financial audits.
The FDD includes an Independent Auditor's Report which states that the audit was conducted in accordance with auditing standards generally accepted in the United States of America (GAAS). This indicates that an independent firm has reviewed Beehive Homes' financial statements and believes they are fairly presented in accordance with GAAP. This report covers the balance sheets as of December 31, 2024, 2023, and 2022, and the related statements of income, changes in shareholder's deficit, and cash flows for the years then ended.
Furthermore, the FDD states that Beehive Homes uses the accrual method of accounting for financial statement purposes. The accrual method recognizes revenue when earned and expenses when incurred, regardless of when cash changes hands. This provides a more accurate picture of a company's financial performance over a period of time compared to the cash method, which only recognizes transactions when cash is received or paid. This is also in line with GAAP standards.