Under what accounting principles are Eos Worldwide's financial statements prepared?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
Basis of presentation: The accompanying financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP).
Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, the company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). This is explicitly stated within the notes to the financial statements, specifically in the section detailing significant accounting policies.
GAAP is a standard framework of guidelines for financial accounting, encompassing the conventions, rules, and procedures necessary to define accepted accounting practices. This ensures uniformity and comparability in financial reporting, allowing potential investors and franchisees to reliably assess Eos Worldwide's financial health and performance.
Furthermore, the FDD includes an Independent Auditor's Report from RSM US LLP, which states that their audit was conducted in accordance with auditing standards generally accepted in the United States of America (GAAS). The auditor's opinion confirms that the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of Eos Worldwide in accordance with GAAP. This independent audit provides an additional level of assurance regarding the reliability and accuracy of Eos Worldwide's financial reporting.