When did Bw Premier Collection adopt the guidance using the modified retrospective approach?

According to Bw Premier Collection's 2025 Franchise Disclosure Document, the company adopted the accounting guidance using the modified retrospective approach on December 1, 2023. This relates to ASU No. 2016-13, which concerns "Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This standard changes how impairment is modeled for most financial assets.

Bw Premier Collection implemented the Current Expected Credit Losses (CECL) methodology, which requires earlier recognition of credit losses and provides more transparency about credit risk. The CECL framework uses a lifetime "expected credit loss" measurement for recognizing credit losses for loans, held-to-maturity securities, and other receivables when the financial asset is originated or acquired. These expected credit losses are then adjusted each period to reflect changes in expected lifetime credit losses.

For Bw Premier Collection, this adoption means that the comparative information for 2023 is reported under previous guidance and is not comparable to the information presented for 2024, as the company did not restate comparative information for 2023. The adoption of this standard did not result in any adjustment to retained earnings as of December 1, 2023. This change primarily affects how Bw Premier Collection accounts for and reports credit losses on its financial assets.