Do the Black Bear Diner financial statements include information about subsequent events?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Use of Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Areas that include significant estimates made by management include, but are not limited to, estimated useful lives and carrying value of long-lived assets and the valuation of intangible assets and goodwill. Actual results could differ significantly from those estimates.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the financial statements' preparation requires management to make estimates and assumptions that could affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities. These estimates also impact the reported amounts of revenue and expenses during the reporting period.
Areas requiring significant estimates include the estimated useful lives and carrying value of long-lived assets, and the valuation of intangible assets and goodwill. The FDD notes that actual results could differ significantly from these estimates.
While the FDD mentions the use of estimates in preparing financial statements, it does not explicitly state whether the financial statements include specific disclosures about 'subsequent events.' Subsequent events are events occurring after the balance sheet date that may require disclosure or adjustment to the financial statements.