What accounting principles must Gokhale Method Institute, Inc.'s financial statements adhere to?

According to the 2024 Gokhale Method Franchise Disclosure Document, the financial statements of Gokhale Method Institute, Inc. must conform to accounting principles generally accepted in the United States of America, also known as U.S. GAAP. This requirement ensures that the company's financial reporting is consistent, transparent, and comparable to other businesses following the same standards.

The FDD emphasizes that Gokhale Method's management is responsible for preparing and fairly presenting these financial statements in accordance with U.S. GAAP. This includes designing, implementing, and maintaining internal controls to prevent material misstatements due to fraud or error. Additionally, management must evaluate whether there are conditions that raise substantial doubt about the company's ability to continue as a going concern within one year after the financial statements are issued.

Furthermore, the independent auditors who review Gokhale Method's financial statements must conduct their audit in accordance with auditing standards generally accepted in the United States of America. This involves obtaining reasonable assurance that the financial statements are free from material misstatement and issuing an auditor's report that includes their opinion on whether the financial statements present fairly the company's financial position, results of operations, and cash flows in accordance with U.S. GAAP. The auditors must also evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management.