What accounting principles must Bumper Man's financial statements adhere to?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
of income and retained earnings and cash flows for the years then ended, and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with U.S.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the company's financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP). This means that Bumper Man adheres to a common set of accounting standards, procedures, and guidelines when creating its financial reports. These principles ensure transparency and consistency in financial reporting, making it easier for potential franchisees and others to understand and compare Bumper Man's financial performance.
The independent auditor's report included in the FDD confirms that the auditor has audited the balance sheets, statements of income and retained earnings, and cash flows of Bumper Man, Inc. The auditor's opinion states that the financial statements present fairly the financial position, results of operations, and cash flows of Bumper Man, Inc. for the years ended December 31, 2024, 2023, and 2022, in accordance with U.S. generally accepted accounting principles. This opinion provides assurance that the financial statements are reliable and fairly represent the company's financial performance.
For a prospective franchisee, this adherence to GAAP is important because it provides a level of confidence in the accuracy and reliability of the financial information presented. It allows them to make informed decisions about investing in a Bumper Man franchise, knowing that the financial data has been prepared and audited according to established standards. Furthermore, the FDD includes notes to the financial statements that describe significant accounting policies, such as the use of estimates, the method for valuing doubtful accounts receivable, and depreciation and amortization methods, providing additional transparency into how Bumper Man manages its finances.