What calendar year basis of reporting has Bombs Away adopted for its financial statements?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). As a result, the Company records revenue when earned and expenses when incurred. The Company has adopted the calendar year as its basis of reporting.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the company has adopted the calendar year as its basis of reporting for its financial statements. This means that Bombs Away reports its financial performance and position on a January 1 to December 31 cycle.
For a prospective franchisee, this is important because it provides a consistent and predictable timeframe for evaluating Bombs Away's financial data. Franchisees can use this information to compare Bombs Away's performance against other franchises or businesses that also use a calendar year for reporting.
Understanding the reporting period helps franchisees interpret the financial statements accurately. For instance, when reviewing the profit and loss statement for the year ended December 31, 2023, a franchisee knows that the figures represent the company's financial activities during that specific calendar year. This standardization aids in benchmarking and financial planning.
It is common for businesses, including franchises, to use a calendar year for financial reporting, as it aligns with standard tax and regulatory requirements. This practice ensures transparency and comparability, making it easier for stakeholders, including potential franchisees, to assess the financial health and performance of Bombs Away.