As of what date were the balance sheets audited for Gokhale Method Institute, Inc.?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
NOTE 4 - SUBSEQUENT EVENTS
Subsequent events are events or transactions that occur after the balance sheet date but before the financial statements are issued or are available to be issued. The Company recognizes in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet, including estimates inherent in the process of preparing the financial statements. The Company's financial statements do not recognize subsequent events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after the balance sheet date and before the financial statements are issued or are available to be issued.
Management has evaluated subsequent events through April 19, 2024, the date on which the financial statements were 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 balance sheet for 2022 was audited up to April 19, 2024. The balance sheet for 2023 was audited up to May 31, 2023. These dates represent when management evaluated subsequent events for the financial statements.
This means that Gokhale Method's management assessed events that occurred after the balance sheet date (December 31, 2022 and December 31, 2023, respectively) but before the financial statements were issued. This evaluation helps ensure that the financial statements accurately reflect the company's financial condition, incorporating any relevant information that became available after the close of the fiscal year but before the statements were finalized.
Prospective franchisees should understand the importance of these dates, as they indicate the period during which management actively reviewed and considered events that could impact the financial statements. This process is a standard accounting practice that aims to provide a more complete and accurate picture of Gokhale Method's financial health.