When will Big Apple Bagels adopt ASU 2023-09?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
In December 2023, the FASB issued ASU 2023-09, "Improvements to Income Tax Disclosures" which is intended to simplify various aspects related to accounting for income taxes. ASU 2023-09 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The amendments in ASU 2023-09 are effective for public business entities for fiscal years beginning after December 15, 2024, including interim periods therein. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The Company will adopt ASU 2023-09 for fiscal year ending November 30, 2026.
Management does not believe that there are any recently issued and effective or not yet effective accounting pronouncements as of November 30, 2024 that would have or are expected to have any significant effect on the Company's financial position, cash flows or income statement.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, Big Apple Bagels will adopt ASU 2023-09 for the fiscal year ending November 30, 2026. ASU 2023-09, issued by the FASB in December 2023, aims to simplify aspects of accounting for income taxes by removing exceptions and clarifying existing guidance.
For a prospective franchisee, this means that Big Apple Bagels is aligning its financial reporting with updated accounting standards. While the franchisor doesn't anticipate any significant effects on its financial position, cash flows, or income statement due to these pronouncements as of November 30, 2024, the adoption of ASU 2023-09 ensures compliance with current accounting practices.
It's worth noting that early adoption of the standard is permitted, including in interim or annual periods for which financial statements have not yet been issued. However, Big Apple Bagels has chosen to implement it for the fiscal year ending November 30, 2026. Franchisees can be assured that Big Apple Bagels is keeping up with changes in accounting standards.