What was the amount of the restated Total Stockholders' Equity for Expense Reduction Analysts?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
nting Standards Board (FASB) Accounting Standards Codification (ASC) 350-40 Internal-Use Software. The effect of the Company's previously issued 2022 financial statements is summarized in the following tables.
Consolidated Balance Sheet as of December 31, 2022:
| Previously Reported | (Decrease) | Restated | |
|---|---|---|---|
| Internal-Use Software, Net | $ - | $ 101,234 | $ 101,234 |
| Total Assets | 10,417,221 | 101,234 | 10,518,455 |
| Retained Earnin |
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the restated Total Stockholders' Equity as of December 31, 2022, was $4,346,117. This restatement reflects adjustments made to correct errors in accounting for capitalized software, as detailed in Note 12 of the financial statements. The original, previously reported Total Stockholders' Equity was $4,244,883, but after an increase of $101,234, the restated value reached $4,346,117.
This adjustment is important for prospective franchisees because it provides a more accurate view of Expense Reduction Analysts' financial position. The restatement indicates that the company identified and corrected a prior accounting error related to internal-use software. This correction increased the Total Stockholders' Equity, which could positively influence investor and franchisee confidence.
For a potential franchisee, understanding these restatements is crucial for assessing the financial stability and transparency of Expense Reduction Analysts. It demonstrates the company's commitment to accurate financial reporting, even if it requires correcting past errors. Franchisees should review Note 12 in the FDD for a complete understanding of the nature of the error and the reasons for the restatement.
It is also worth noting that the restatement affected other line items in the balance sheet, such as Internal-Use Software, Net, and Total Assets, each increasing by the same $101,234. Additionally, Retained Earnings (Accumulated Deficit) Controlling Interest was impacted, increasing from a previously reported deficit of $9,366 to a restated value of $91,868.