What is the basis of presentation for the summary of significant accounting policies of the Gokhale Method?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
Basis of Presentation
This summary of significant accounting policies of the Company is presented to assist in understanding the Company's financial statements. The financial statements and notes are representations of the Company's management, who is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in United States of America ("U.S. GAAP") and have been consistently applied in the preparation of the financial statements.
Use of Estimates
Management of the Company has made certain estimates and assumptions relating to the reporting of assets, liabilities, results of operations, and the disclosure of contingent assets and liabilities to prepare these financial statements in accordance with accounting principles generally accepted in the United States of America. Actual results could differ from these estimates.
Cash and Cash Equivalents
For the purposes of the statement of cash flows, the Company considers all highly liquid investments and investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents consist of cash on hand.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 FDD, the summary of significant accounting policies for Gokhale Method is presented to aid in understanding the company's financial statements. These financial statements and their accompanying notes are the responsibility and representation of Gokhale Method's management, ensuring their integrity and objectivity.
The accounting policies used by Gokhale Method adhere to accounting principles generally accepted in the United States of America (U.S. GAAP). These principles have been consistently applied when preparing the financial statements. This consistency ensures that the financial information is reliable and comparable across different reporting periods.
In preparing these financial statements, Gokhale Method's management makes certain estimates and assumptions that affect the reported amounts of assets, liabilities, results of operations, and disclosures of contingent assets and liabilities. These estimates are a necessary part of the financial reporting process, but actual results could differ from these estimates. For example, the company considers all highly liquid investments and investments with original maturities of three months or less to be cash equivalents for the statement of cash flows.