How does Bimbo Foods Bakeries Distribution recognize gains or losses arising from derecognition of an asset?

According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, when an item of property, plant, and equipment is derecognized upon disposal or when no future economic benefits are expected from its use, any gain or loss arising from derecognition of the asset is recognized in results. The gain or loss is calculated as the difference between the net disposal proceeds and the carrying amount of the asset.

For a prospective Bimbo Foods Bakeries Distribution franchisee, this means that if they dispose of an asset used in their distribution business (such as equipment) or if an asset is deemed to have no future economic value, the resulting gain or loss from that asset's derecognition will be recorded in the franchisee's financial results. The calculation of this gain or loss involves subtracting the asset's carrying amount (its book value after depreciation) from the net proceeds received from its disposal.

This accounting treatment is standard and ensures that the franchisee's financial statements accurately reflect the economic impact of asset disposals or write-offs. It is important for franchisees to maintain accurate records of asset values and disposal proceeds to properly account for these gains or losses. This policy aligns with typical accounting practices, providing transparency in how asset disposals affect the financial performance of a Bimbo Foods Bakeries Distribution franchise.