What calendar year basis does Chocolate Fish Coffee use for reporting?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). As a result, the Company records revenue when earned and expenses when incurred. The Company has adopted the calendar year as its basis of reporting.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 41)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, the company has adopted the calendar year as its basis of reporting. This means that Chocolate Fish Coffee's financial year aligns with the standard calendar year, beginning on January 1 and ending on December 31.
For a prospective franchisee, this is important for understanding the financial statements provided in the FDD. The financial data presented will cover the period from January 1 to December 31 of each year. This standardization makes it easier to compare Chocolate Fish Coffee's financial performance with other businesses and franchises that also use a calendar year for reporting.
Furthermore, the FDD includes an audited opening balance sheet dated December 31, 2023, and states that the fiscal year end is December 31. This confirms that Chocolate Fish Coffee's financial reporting is based on the calendar year ending on December 31, which is a common practice for many businesses.