How does Bw Premier Collection measure the recoverability of assets when reviewing for impairment?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. The Company has not recognized any impairments during the years ended November 30, 2024 and 2023.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the company reviews long-lived assets for impairment whenever events or changes in circumstances suggest that the carrying amount of an asset may not be recoverable. The recoverability of assets is specifically measured by comparing the carrying amount of an asset to the future undiscounted net cash flows expected to be generated by the asset.
If the assets are considered impaired, the impairment recognized is the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. This means Bw Premier Collection assesses whether the asset's book value is higher than what it could realistically be sold for or generate in the future.
The document states that Bw Premier Collection has not recognized any impairments during the years ended November 30, 2024, and 2023. This indicates that, based on their assessments, the carrying amounts of their assets have been deemed recoverable during those periods.