When Bombs Away prepares its financial statements, what accounting principles must it conform with?
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 prepares its financial statements in accordance with accounting principles generally accepted in the United States of America, also known as US GAAP. This means Bombs Away follows a standardized set of rules and guidelines when reporting its financial performance and position.
US GAAP aims to ensure transparency and consistency in financial reporting, allowing potential investors and franchisees to reliably compare Bombs Away's financials with those of other companies. This includes how Bombs Away recognizes revenue, expenses, and values its assets and liabilities.
Furthermore, the management of Bombs Away is responsible for preparing these financial statements fairly and ensuring they are free from material misstatements, whether due to fraud or error. The company's adherence to US GAAP is also reviewed by an independent auditor, who expresses an opinion on whether the financial statements present fairly the company's financial position and results of operations.