What was Del Taco's conclusion regarding the impact of accounting pronouncements adopted in 2024 on its consolidated financial statements?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Effect of accounting pronouncements adopted in 2024 and those to be adopted in future periods — We reviewed the accounting pronouncements adopted in 2024, as well as all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on our consolidated financial statements.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, Del Taco reviewed accounting pronouncements adopted in 2024 and other recently issued accounting pronouncements. Del Taco concluded that these pronouncements were either not applicable or not expected to have a significant impact on its consolidated financial statements.
For a prospective franchisee, this statement provides some assurance that recent changes in accounting standards are not expected to negatively affect Del Taco's financial reporting. This can be seen as a positive sign, suggesting stability and predictability in the company's financial practices.
However, it is important to note that this conclusion is based on Del Taco's assessment and is subject to change. Future accounting pronouncements or changes in interpretation could potentially have a different impact. A prospective franchisee may want to discuss this further with Del Taco to understand the basis for their conclusion and any potential risks associated with future accounting changes.