What accounting principles must Creative World School's financial statements adhere to?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
lorida
Opinion
We have audited the accompanying financial statements of Creative World Schools Franchising Company, Inc. (the Company), which comprise the balance sheets as of December 31, 2024, 2023 and 2022, and the related statements of ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Creative World Schools Franchising Co., Inc., as of December 31, 2024, 2023 and 2022, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those sta Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Creative World Schools Franchising Co., Inc. and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, the company's financial statements must be prepared in accordance with accounting principles generally accepted in the United States of America. This adherence to GAAP ensures that the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of Creative World Schools Franchising Co., Inc. for the years specified.
An independent audit firm also conducts its audits in accordance with auditing standards generally accepted in the United States of America (GAAS). These standards require the auditors to be independent and to meet ethical responsibilities. The auditors' role is to obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. This involves exercising professional judgment, assessing risks, and evaluating the appropriateness of accounting policies and the reasonableness of significant accounting estimates made by management.
Management is responsible for preparing and fairly presenting the financial statements in accordance with GAAP, including designing, implementing, and maintaining internal controls relevant to the preparation and fair presentation of the financial statements. Management must also evaluate whether there are conditions or events that raise substantial doubt about Creative World School's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
For a prospective franchisee, this means that Creative World School's financial reporting follows a standardized and transparent framework, which is verified by independent auditors. This provides a level of confidence in the financial information presented in the FDD, allowing potential franchisees to make more informed decisions. However, it is important for franchisees to consult with their own financial advisors to fully understand the implications of these financial statements.