How did the adoption of ASU 2023-07 affect Budget's Consolidated Financial Statements?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
On January 1, 2024, as the result of a new accounting pronouncement, we adopted ASU 2023-07, "Improvements to Reportable Segment Disclosures," which amends Topic 280 primarily through enhanced disclosures about significant segment expenses. The adoption of this accounting pronouncement has resulted in incremental disclosures within the notes to our Consolidated Financial Statements.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the company adopted ASU 2023-07, "Improvements to Reportable Segment Disclosures," on January 1, 2024. This accounting pronouncement amends Topic 280, focusing on enhanced disclosures regarding significant segment expenses.
For Budget franchisees, this means that the financial statements in the FDD will include more detailed information about the expenses associated with different segments of Budget's operations. This increased transparency can help potential franchisees better understand the cost structure of the business and make more informed decisions.
The adoption of ASU 2023-07 has resulted in incremental disclosures within the notes to Budget's Consolidated Financial Statements. While the document specifies that the adoption of ASU 2023-07 has led to additional disclosures, it does not provide specific details on what those disclosures entail. A prospective franchisee should review the notes to the financial statements carefully to understand the impact of this new accounting pronouncement.