What was the accumulated other comprehensive loss for Golden Krust Caribbean Restaurant as of January 1, 2022?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
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GOLDEN KRUST FRANCHISING, INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT YEARS ENDED DECEMBER 31, 2022 AND 2021
| Accumulated Other | ||||||
|---|---|---|---|---|---|---|
| Common Stock* | Accumulated Deficit | Comprehensive (Loss) Gain | Total | |||
| BALANCE - January 1, 2021 | $ 170,100 | $ | (5,754,056) | $ | (4,000) | $ (5,587,956) |
| Foreign currency translation adjustment | - | - | (5,066) | $ (5,066) | ||
| Net loss | - | (659,030) | - | (659,030) | ||
| BALANCE - December 31, 2021 | 170,100 | (6,413,086) | (9,066) | (6,2 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the accumulated other comprehensive loss as of January 1, 2021, was a loss of $4,000. By December 31, 2021, this loss had increased to $9,066.
This figure reflects the cumulative unrealized gains and losses from items such as foreign currency translation adjustments. These adjustments arise when a company has financial activities or subsidiaries operating in foreign currencies, and their financial results need to be translated into the company's reporting currency (in this case, presumably U.S. dollars).
For a prospective Golden Krust Caribbean Restaurant franchisee, this information provides insight into the financial complexities of the franchisor's business, particularly if the franchisor has international operations or dealings. While a relatively small amount, the presence of an accumulated other comprehensive loss suggests that the franchisor's financial performance can be affected by currency fluctuations and other factors beyond its immediate control. It's important to note that this is just one element of the overall financial picture and should be considered alongside other financial metrics.