What accounting principles must Gokhale Method Institute's financial statements adhere to?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Gokhale Method Institute, Inc. as of December 31, 2021 and 2020, 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.
Management's Responsibility for the Financial Statements
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; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Gokhale Method Institute's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the company's financial statements must conform to accounting principles generally accepted in the United States of America, also known as U.S. GAAP. This standard ensures uniformity and comparability in financial reporting.
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. Management must also evaluate whether any conditions or events raise substantial doubt about the company's ability to continue as a going concern within one year.
Furthermore, independent auditors audit Gokhale Method's financial statements to provide an opinion on whether they are fairly presented in accordance with U.S. GAAP. The auditors conduct their audit in accordance with auditing standards generally accepted in the United States of America, ensuring they remain independent and meet ethical requirements. This rigorous process aims to provide reasonable assurance that the financial statements are free from material misstatement.