What accounting standard regarding income taxes did Bw Premier Collection adopt?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
ability | 848 | - | | Total | $ 81,708 | $ 78,042 | In December 2019, the FASB issued ASU 2019-12 "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes". This new guidance is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The standard is effective for fiscal years beginning after December 15, 2021 for private companies. The Company adopted ASU 2019-12 on December 1, 2022 and the adoption did not have a material impact on the Company's consolidated financial statements and disclosures.
(2) Accounts Receivable, Principally from Members, net and Allowance for Doubtful Accounts
Accounts receivable, principally from Members, net primarily consists of amounts due from hoteliers with whom the Company has membership, franchise, or license agreements and include reimbursements of costs the Company incurred on behalf of the hoteliers. The Company records an allowance for doubtful accounts when losses are probable, based on an assessment of historical collection activity and current business conditions.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 FDD, Bw Premier Collection adopted ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" on December 1, 2022. This standard is intended to simplify income tax accounting by removing certain exceptions to general principles and improving consistent application of GAAP. The FDD states that the adoption of ASU 2019-12 did not have a material impact on Bw Premier Collection's consolidated financial statements and disclosures.
Additionally, in December 2023, the Financial Accounting Standards Board issued ASU 2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This update establishes new disclosure requirements related to income taxes and modifies or eliminates certain existing requirements. Under the new guidance, entities will be required to consistently categorize and disaggregate information in the rate reconciliation, as well as further disaggregate income tax paid.
This standard is effective for fiscal years beginning after December 15, 2025, for private companies, meaning Bw Premier Collection will be required to adopt this guidance beginning with the fiscal year 2027. The company is currently assessing the impact of this guidance on its financial statement disclosures and expects to implement the changes in accordance with the effective date.