What accounting principles must Brain Balance's financial statements adhere to?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
------|----------| | Financial Statements | | | Balance Sheet | 3 | | Statement of Operations | 4 | | Statement of Changes in Member's Equity (Deficit) | 5 | | Statement of Cash Flows | 6 | | Notes to Financial Statements | 7-12 |
Independent Auditor's Report
To the Member BB Franchising, LLC
Opinion
We have audited the financial statements of BB Franchising, LLC (the "Company"), which comprise the balance sheet as of December 31, 2024, 2023, and 2022 and the related statements of operations, changes in member's equity (deficit), and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, 2023, and 2022 and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audits of the Financial Statements section of our report. We are required to be independent of the Company and to meet our ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the company's financial statements must adhere to accounting principles generally accepted in the United States of America. This ensures that the financial statements present the company's financial position, results of operations, and cash flows fairly and in all material respects.
Furthermore, the management of Brain Balance is responsible for preparing and fairly presenting the financial statements in accordance with these accounting principles. This includes designing, implementing, and maintaining internal controls relevant to the preparation and presentation of financial statements that are free from material misstatement, whether due to fraud or error. Management is also required to evaluate whether there are conditions or events that raise substantial doubt about the company's ability to continue as a going concern within one year after the financial statements are issued.
An independent auditor audits Brain Balance's financial statements to provide an opinion on whether the statements are presented fairly in accordance with generally accepted accounting principles (GAAP). The auditor's responsibilities include obtaining reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error, and issuing an auditor's report that includes their opinion. The audit is conducted in accordance with auditing standards generally accepted in the United States of America (GAAS).