What accounting standards were used to prepare the Floors To Go financial statements?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Floors To Go, LLC as of December 31, 2024 and 2023, and the results of its operations and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
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, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting year. Actual results could differ from those estimates. Significant estimates include, but are not limited to, the franchisee cashback program accruals.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the company's financial statements were prepared in accordance with accounting principles generally accepted in the United States of America. This indicates that Floors To Go adheres to a standardized set of guidelines and practices when reporting its financial data.
The independent auditor's report explicitly states that the financial statements present fairly the financial position, results of operations, and cash flows of Floors To Go in accordance with these principles. This opinion from the auditor provides assurance that the financial statements are reliable and fairly represent the company's financial performance.
Furthermore, the FDD mentions that the preparation of financial statements requires management to make estimates and assumptions. These estimates can affect the reported amounts of assets, liabilities, income, and expenses. One significant estimate mentioned is related to franchisee cashback program accruals. Prospective franchisees should be aware that these estimates can impact the financial results and should inquire about the methods used to determine these estimates to better understand the financial reporting practices of Floors To Go.