Do the Gokhale Method's financial statements include a period after the last fiscal year-end?
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 21 — FINANCIAL STATEMENTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 FDD, Gokhale Method's financial statements do include an evaluation of subsequent events, which are events or transactions that occur after the balance sheet date but before the financial statements are issued.
The financial statements recognize the effects of subsequent events that provide additional evidence about conditions that existed at the balance sheet date. However, they do not recognize subsequent events that provide evidence about conditions that did not exist at the balance sheet date but arose after that date.
For the financial statements for the year ended December 31, 2022, management evaluated subsequent events through April 19, 2024, the date on which the financial statements were available to be issued. This means that any events occurring between January 1, 2023, and April 19, 2024, that could affect the financial statements were considered. A prospective franchisee can be reasonably assured that the financial statements have been updated to include any important events that occurred after the close of the fiscal year.