When does Caring Senior Service review its long-lived assets for impairment?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
Notes to Financial Statements December 31, 2024, 2023, and 2022
2. Summary of Significant Accounting Policies (continued)
Impairment of Long-Lived Assets
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The determination of recoverability is made based upon the estimated undiscounted future net cash flows, excluding interest expense. The amount of impairment loss, if any, is determined by comparing the fair value, as determined by a discounted cash flow analysis, with the carrying value of the related assets. Management determined there was no impairment of long-lived assets at December 31, 2024, 2023, and 2022.
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to the 2025 Caring Senior Service FDD, the company reviews long-lived assets for impairment whenever events or changes in circumstances suggest that the asset's carrying amount may not be recoverable. This determination is based on estimated undiscounted future net cash flows, excluding interest expense.
The FDD further explains that if an impairment loss is indicated, the amount of the loss is determined by comparing the fair value, as determined by a discounted cash flow analysis, with the carrying value of the related assets.
For prospective franchisees, this means that Caring Senior Service assesses the value of its assets regularly and adjusts its financial statements to reflect any declines in value. According to the 2025 FDD, management determined there was no impairment of long-lived assets at December 31, 2024, 2023, and 2022.