What accounting standards are used to prepare the C12 Group financial statements?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ng to our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, C12 Group prepares its financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). This is explicitly stated within the Independent Auditor's Report and the Summary of Significant Accounting Policies. This ensures that the financial statements are presented fairly and are free from material misstatement.
Specifically, the management of C12 Group is responsible for preparing and presenting the financial statements according to GAAP. This includes designing, implementing, and maintaining internal controls relevant to the preparation and presentation of these financial statements. The auditor's role is to audit these statements in accordance with auditing standards generally accepted in the United States of America, providing an opinion on whether the financial statements present fairly the financial position, results of operations, and cash flows of C12 Group.
For a prospective franchisee, this means that C12 Group's financial statements are prepared using a standardized and widely recognized set of accounting rules. This allows for easier comparison with other companies and provides a level of assurance that the financial information is reliable and consistent. Franchisees can review these statements to assess the financial health and stability of C12 Group, which is a crucial part of their due diligence process.