Under what accounting standard does City Publications recognize revenue?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
| 3 | |
|---|---|
| Report | |
| Balance Sheets | 5 |
| Statements | 6 |
| of Operations | |
| Statements | 7 |
| of Changes in Shareholders' | |
| (Deficit) | |
| Statements | 8 |
| of Cash Flows | |
| Notes to Financial Statements | 9 |
Independent Auditor's Report
To the Members CITY PUBLICATIONS FRANCHISE GROUP, INC. Atlanta, Geogia
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying balance sheets of CITY PUBLICATIONS FRANCHISE GROUP, INC. as of December 31, 2024, and 2023 and the related statements of operations, shareholders' (deficit), and cash flows for the years ended December 31, 2024, and 2023, and the notes to financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of CITY PUBLICATIONS FRANCHISE GROUP, INC.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America. This is explicitly stated in the Independent Auditor's Report, which expresses an opinion that the financial statements present fairly the financial position, results of operations, and cash flows of City Publications Franchise Group, Inc. for the years ended December 31, 2024, and 2023.
Furthermore, Note 1 to the financial statements, which outlines the significant accounting policies, mentions that the preparation of the company's financial statements adheres to United States generally accepted accounting principles. This requires management to make estimates and assumptions that could affect the reported amounts of assets and liabilities, as well as the disclosure of contingent items and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
For a prospective franchisee, this means that City Publications' financial reporting follows a standardized and regulated framework. This framework ensures a degree of transparency and comparability, which is essential for making informed investment decisions. Understanding that the financial statements are prepared under these principles allows potential franchisees to have more confidence in the financial data presented and to better assess the financial health and performance of the franchisor.