When did Hardees adopt the Financial Accounting Standards Board's standard regarding credit impairment?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
In June 2016, the Financial Accounting Standards Board ("FASB") issued a standard that requires measurement and recognition of expected versus incurred credit losses for financial assets held, including trade receivables. The standard is effective for interim and annual reporting periods beginning after December 15, 2019 for public entities. For other entities, the standard is effective for interim and annual reporting periods beginning after December 15, 2022. The Company adopted this amendment during the first quarter of 2024. The adoption of this guidance did not have a material impact on our Consolidated Financial Statements.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the company adopted the Financial Accounting Standards Board (FASB) standard regarding credit impairment during the first quarter of 2024. This standard necessitates the measurement and recognition of expected versus incurred credit losses for financial assets held, including trade receivables. The original standard was issued by the FASB in June 2016.
For public entities, this standard was effective for interim and annual reporting periods beginning after December 15, 2019. However, for other entities, including Hardees, the standard became effective for interim and annual reporting periods beginning after December 15, 2022.
The FDD states that the adoption of this guidance did not have a material impact on Hardees's Consolidated Financial Statements. This suggests that while the accounting practice changed, it did not significantly alter the reported financial results for Hardees.