For the Gokhale Method, what year is covered by the Statement of Operations?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Gokhale Method Institute, Inc. as of December 31, 2021 and 2020, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Gokhale Method Institute's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Auditors' Responsibility for the Audits of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing audits in accordance with generally accepted auditing standards, we:
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the Statement of Operations includes financial data for the years ending December 31, 2020, 2021 and 2022.
Specifically, the independent auditors' report states that they have audited the financial statements of Gokhale Method Institute, Inc., which include the balance sheets as of December 31, 2021 and 2020, and the related statements of operations, changes in stockholder's equity, and cash flows for the years then ended. This indicates that the financial statements provide a comparative view of the company's financial performance over these two years.
Additionally, another independent auditors' report confirms that they audited the financial statements of Gokhale Method Institute, Inc., which comprise the balance sheet as of December 31, 2022, and the related statements of operations, changes in stockholder's equity, and cash flows for the year then ended. This provides prospective franchisees with a three-year view of Gokhale Method's financial performance, which is a common practice in franchising to give potential investors a better understanding of the company's financial trends and stability.