What is the name of the board that issued the Accounting Standards Codification referenced by Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Additionally, the Company owned and operated one corporate location, Carbone's Pizzeria, during the year ended October 31, 2024.
2. Summary of Significant Accounting Policies
Fiscal Year
The Company's fiscal year is October 31.
Basis of Accounting and Consolidated Financial Statement Presentation
The Consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP").
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Carbones Pizzeria adheres to accounting principles generally accepted in the United States of America (US GAAP) for its financial statements. However, the FDD does not explicitly mention the name of the board or entity responsible for issuing the Accounting Standards Codification that underpins US GAAP.
While the document references US GAAP, it does not specify the Financial Accounting Standards Board (FASB) as the issuing authority. This is a common oversight, as FASB is widely recognized as the standard-setting body for accounting principles in the U.S.
A prospective Carbones Pizzeria franchisee should verify with the franchisor to confirm which specific version and interpretations of US GAAP are used in preparing their financial statements. Understanding the accounting standards is crucial for interpreting the financial performance and health of the franchise system.