When did Carls transition to Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 842, "Leases" (ASC 842)?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
We transitioned to Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 842, "Leases" ("ASC 842"), from ASC Topic 840, "Leases" (the "Previous Standard") on February 1, 2022. Our Consolidated Financial Statements reflect the application of ASC 842 guidance beginning in 2023, while our Consolidated Financial Statements for the prior period were prepared under the guidance of the Previous Standard. See Note 9, Leases, for further information about our transition to this new lease guidance on a modified retrospective basis using the effective date transition method.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the company transitioned to Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 842, "Leases" (ASC 842) from ASC Topic 840, "Leases" on February 1, 2022. The document specifies that Carls's Consolidated Financial Statements reflect the application of ASC 842 guidance beginning in 2023. The Consolidated Financial Statements for the prior period were prepared under the guidance of the Previous Standard. Further details regarding the transition to the new lease guidance using a modified retrospective basis with the effective date transition method can be found in Note 9, Leases.