What accounting principles must Crepe De Licious' financial statements adhere to?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
We have audited the financial statements of Crepe Delicious Holding USA, Inc. (a C Corporation), which comprise the balance sheets as of December 31, 2024 and December 31, 2023, and the related statements of income and retained earnings, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Crepe Delicious Holding USA, Inc. as of December 31, 2024 and December 31, 2023, 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.
Management is responsible for the preparation and fair presentation of the 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.
As discussed in Note 1 to the financial statements, in 2023, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Codification 326, Financial Instruments - Credit Losses. Our opinion is not modified with respect to this matter.
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the company's financial statements must adhere to accounting principles generally accepted in the United States of America. This is explicitly stated in the Independent Auditor's Report, which expresses an opinion on whether the financial statements present fairly the financial position, results of operations, and cash flows of Crepe Delicious Holding USA, Inc. in accordance with these principles.
The management of Crepe De Licious is responsible for preparing and fairly presenting the financial statements according to these accounting principles. This includes designing, implementing, and maintaining internal controls relevant to ensure the financial statements are free from material misstatement, whether due to fraud or error. The auditor's role is to obtain reasonable assurance that the financial statements as a whole are free from material misstatement and to issue a report including their opinion.
Furthermore, the 2025 FDD mentions that in 2023, Crepe De Licious adopted Financial Accounting Standards Board (FASB) Accounting Standards Codification 326, Financial Instruments - Credit Losses. This adoption and adherence to generally accepted accounting principles (GAAP) ensures that the financial statements are reliable and comparable, which is crucial for potential franchisees evaluating the financial health and stability of Crepe De Licious.