When are the Gokhale Method's financial statements considered 'available to be issued'?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
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 the 2024 Gokhale Method Franchise Disclosure Document, the financial statements are considered available to be issued when management has evaluated subsequent events. Subsequent events are defined as events or transactions that occur after the balance sheet date but before the financial statements are either issued or available to be issued.
The Gokhale Method recognizes the effects of subsequent events in its financial statements if these events provide additional evidence about conditions that existed at the balance sheet date, including any estimates used to prepare the financial statements. However, the company does not recognize subsequent events that pertain to conditions that did not exist at the balance sheet date but arose before the financial statements were issued or were available to be issued.
For example, in the 2022 financial statements, management evaluated subsequent events through April 19, 2024, which was the date the financial statements were considered available to be issued. This date is important because it marks the cutoff for considering events that could impact the financial statements, ensuring that the statements reflect the most accurate and up-to-date information available at the time of release.