What accounting standard was used for the AutoClerk acquisition by Bw Premier Collection's parent company?

According to Bw Premier Collection's 2025 Franchise Disclosure Document, the acquisition of AutoClerk, Inc. (AC) by the parent company was accounted for as a business combination following ASC Topic 805, Business Combinations. This accounting standard is specifically designed for how companies record and report the financial impact when they acquire another business.

In practical terms, this means that when the parent company purchased 100% of AutoClerk's outstanding shares on July 31, 2019, the transaction was recorded and reported in accordance with ASC Topic 805. This involves identifying and measuring the assets acquired and liabilities assumed, and then allocating the purchase price to these items based on their fair values. Any excess of the purchase price over the fair value of the net assets acquired is recorded as goodwill.

For a prospective Bw Premier Collection franchisee, understanding the accounting standards used in acquisitions by the parent company may not have an immediate impact on day-to-day operations. However, it provides insight into the financial practices and transparency of the parent company. Knowing that the acquisition was handled according to a recognized accounting standard like ASC Topic 805 can offer some reassurance about the financial management of the overall organization. It also demonstrates that the parent company follows standard accounting practices when integrating new entities into its business structure.