What accounting standards were used in the audit of the consolidated financial statements for The ONE Group Hospitality, Inc., which includes Benihana, as of and for the year ended December 31, 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
f Changes in Stockholders' Equity | F-7 | | Consolidated Statements of Cash Flows | F-8 | | Notes | F-9 | | to Consolidated Financial Statements | |
F-1
Report of Independent Registered Accounting Firm
To the stockholders and the Board of Directors of The ONE Group Hospitality, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of The ONE Group Hospitality, Inc. and subsidiaries (the "Company") as of December 31, 2021, the related consolidated statements of operations and comprehensive income (loss), changes in stockholders' equity, and cash flows, for the period ended December 31, 2021, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021, and the results of its operations and its cash flows for the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 16, 2022, expressed an adverse opinion on the Company's internal control over financial reporting because of material weaknesses.
Basis for Opinion
These financial statements are the responsibility of the Company's management.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the consolidated financial statements of The ONE Group Hospitality, Inc. and subsidiaries as of December 31, 2021, were audited in conformity with accounting principles generally accepted in the United States of America. This indicates that the company's financial reporting adheres to a standardized framework, ensuring transparency and comparability for potential investors and franchisees.
The audit was conducted by an independent registered public accounting firm, which is registered with the Public Company Accounting Oversight Board (PCAOB). This registration requires the firm to be independent and adhere to U.S. federal securities laws and the SEC and PCAOB's rules and regulations. This adds another layer of scrutiny and credibility to the financial statements.
For a prospective Benihana franchisee, this means that the financial data presented by The ONE Group Hospitality, Inc. is prepared using well-established and regulated accounting standards. This allows for a more informed assessment of the company's financial health and performance. Franchisees can review these audited statements to gain confidence in the financial stability of the parent company.