What accounting standards does Del Taco use to prepare its financial statements?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Basis of presentation — The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and the rules and regulations of the Securities and Exchange Commission ("SEC").
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the accompanying condensed consolidated financial statements have been prepared following U.S. Generally Accepted Accounting Principles (GAAP) and the rules and regulations of the Securities and Exchange Commission (SEC).
This means Del Taco adheres to a standardized set of accounting rules, principles, and procedures when creating its financial statements. GAAP aims to ensure accuracy, consistency, and comparability in financial reporting. The SEC also has specific requirements for financial reporting by companies, adding another layer of regulatory oversight.
For a prospective Del Taco franchisee, this indicates that the financial information presented in the FDD is prepared using well-established and regulated accounting standards. This can provide a level of confidence in the reliability and transparency of the financial data, which is crucial for making informed investment decisions. Franchisees can review Del Taco's financial performance with the understanding that it adheres to standard accounting practices.