What accounting principles must Epcon Communities' consolidated financial statements adhere to?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of income and changes in member's equity and cash flows for the years then ended, and the related notes to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 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.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the company's consolidated financial statements must adhere to accounting principles generally accepted in the United States of America (GAAP). This means that Epcon Communities' financial reporting must follow a standardized set of rules and guidelines established by the accounting profession to ensure consistency and comparability.
The independent auditor's report explicitly states that the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of Epcon Communities in accordance with GAAP. This opinion from the auditor provides assurance that the financial statements can be relied upon by prospective franchisees.
Furthermore, the document highlights that the preparation of these financial statements requires management to make estimates and assumptions that could affect the reported amounts of assets, liabilities, revenues, and expenses. This is a standard practice in accounting, but it also means that the actual results could differ from those estimates. Prospective franchisees should be aware of this inherent uncertainty when reviewing Epcon Communities' financial statements.