What was the amount of the deferred tax asset for Best Brains as of December 31, 2023?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| 5 Other Assets | As at December 31, 2023 | As at December 31, 2022 |
|---|---|---|
| Deferred Tax Asset | 800.00 | 800.00 |
| Advance | 122,000.00 | 122,000.00 |
| Loan Issued | 942,746.00 | 825,254.00 |
| Rent Deposit | 10,503.46 | 10,503.46 |
| Total | 1,076,049.46 | 958,557.46 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the deferred tax asset as of December 31, 2023, was $800. This figure is part of the 'Other Assets' category on the balance sheet.
For a prospective Best Brains franchisee, understanding the deferred tax asset can be important for assessing the overall financial health of the company. A deferred tax asset typically arises from temporary differences between the book value of an asset or liability and its tax basis. It represents a future tax benefit that the company expects to realize.
However, it's important to note that the deferred tax asset is a relatively small amount compared to Best Brains' other assets, such as cash and cash equivalents ($262,049.67) and trade receivables ($2,038,407.38) as of the same date. This suggests that temporary differences between book and taxable income are not a major factor in Best Brains' financial reporting.
Franchisees should consider this information in the context of the full financial statements and consult with a financial advisor to understand the implications for their investment. While a small deferred tax asset may not be a cause for concern, it's essential to have a comprehensive understanding of the franchisor's financial position.