In the context of Ben Jerrys' consolidated financial statements, what accounting principles are followed?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
nancial Statements
Opinion
We have audited the consolidated financial statements of Ben & Jerry's Franchising, Inc. and its subsidiary (the Company), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, changes in shareholder's equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with U.S. generally accepted accounting principles.
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 Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with U.S. generally accepted accounting principles, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated 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 consolidated financial statements are issued.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 89–133)
What This Means (2025 FDD)
According to Ben Jerrys' 2025 Franchise Disclosure Document, the company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. This indicates that Ben Jerrys adheres to a standardized set of accounting rules and guidelines when reporting its financial performance and position.
Management is responsible for preparing and fairly presenting these financial statements, including designing, implementing, and maintaining internal controls to ensure the statements are free from material misstatement, whether due to fraud or error. This means Ben Jerrys' management takes responsibility for the accuracy and reliability of the financial information provided.
Furthermore, in preparing these statements, management must 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 statements are issued. This involves assessing the company's financial health and its ability to meet its obligations in the foreseeable future. The company's significant estimates include the assessment of any impairment of its intangible assets and the allowance for allowance for credit losses. Actual results could differ from those estimates.
An independent auditor, KPMG LLP, audits these consolidated financial statements. Their opinion states that the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of Ben Jerrys in accordance with U.S. generally accepted accounting principles. This provides an additional level of assurance to potential franchisees regarding the reliability of the financial information presented.