What accounting standard did Expense Reduction Analysts adopt at the beginning of 2023?

According to the 2025 FDD, Expense Reduction Analysts did not adopt a new accounting standard at the beginning of 2023. However, in 2022, Expense Reduction Analysts restated its financial statements to correct errors in how it recorded capitalized internal-use software. This correction was made as prescribed by the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 350-40 Internal-Use Software.

This means that Expense Reduction Analysts had to adjust its previously issued financial statements to accurately reflect the value and accounting treatment of its internal-use software assets. This type of restatement can occur when a company identifies errors or omissions in its past financial reporting and needs to ensure compliance with accounting standards.

For a prospective franchisee, this indicates that Expense Reduction Analysts is committed to correcting errors in its accounting practices and adhering to accounting standards. While the correction relates to a prior period (2022), it demonstrates the company's willingness to address and rectify any misstatements in its financial reporting. It is important for potential franchisees to review the audited financial statements and related notes to understand the nature and impact of such corrections on the company's financial position and performance.