How does Bw Premier Collection review long-lived assets 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 when events or changes in circumstances suggest that the carrying amount of an asset may not be recoverable. The recoverability of these assets is assessed by comparing the carrying amount 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 exceeds the estimated fair value of the assets. It is important to note that Bw Premier Collection did not recognize any impairments during the years ended November 30, 2024, and 2023.
For a prospective franchisee, this means that Bw Premier Collection regularly assesses whether the value of its long-term assets (like property or equipment) has declined. If the expected future cash flows from an asset are less than its book value, the asset's value is written down to its fair value, reflecting a loss on the company's financial statements. This process ensures that the company's assets are not overstated on its balance sheet.