According to Engel & Volkers's 2025 Franchise Disclosure Document, the company prepares its consolidated financial statements using the accrual basis of accounting. This method conforms with accounting principles generally accepted in the United States of America, also known as U.S. GAAP.

The accrual basis of accounting means that Engel & Volkers recognizes revenues when they are earned and expenses when they are incurred, regardless of when cash changes hands. This provides a more accurate picture of the company's financial performance over a period of time compared to the cash basis of accounting, which only recognizes revenues and expenses when cash is received or paid.

Furthermore, the preparation of these statements requires management to make estimates and assumptions that could affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates are used for items such as accounts receivable allowances, the useful lives and recoverability of long-lived assets, revenue recognition, the realizability of deferred tax assets, uncertain tax positions, and contingencies. Actual results could differ from these estimates, introducing a degree of uncertainty into the financial reporting. Prospective franchisees should be aware of these accounting practices and their potential impact when reviewing Engel & Volkers's financial statements.