In the context of the Gokhale Method FDD, what is the balance sheet date relevant to subsequent events?

According to the 2024 Gokhale Method FDD, the company's financial statements for the year ended December 31, 2023, have a subsequent event evaluation date. Management evaluated subsequent events through April 19, 2024, which is the date the financial statements were available to be issued.

Subsequent events are defined as events or transactions that occur after the balance sheet date but before the financial statements are issued or available to be issued. Gokhale Method recognizes in its financial statements the effects of subsequent events that provide additional evidence about conditions that existed at the balance sheet date. This includes any estimates inherent in preparing the financial statements.

However, Gokhale Method does not recognize subsequent events that provide evidence about conditions that did not exist at the balance sheet date but arose after that date and before the financial statements were issued. This distinction is important for franchisees to understand, as it clarifies how events occurring after the balance sheet date are treated in the company's financial reporting.