What financial instruments does Itan consider to be cash equivalents?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ies - The Company follows the alternative accounting standard for private companies with respect to entities under common control. As such, entities under common control have not been evaluated under the guidance in the variable interest subsections of the Financial Accounting Standards Board ("FASB") ASC 810.
Fair value measurements - The Company follows accounting standards consistent with the FASB codification which defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements for all fi
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the company considers financial instruments with a fixed maturity date of less than three months to be cash equivalents. Itan holds its cash deposits at a regional bank.
The FDD also states that the Federal Deposit Insurance Corporation (FDIC) insures the balance in the account up to $250,000 per bank as of December 31, 2024, and 2023. The company had $0 and $104,387 that were in excess of the FDIC limit as of December 31, 2024, and 2023, respectively.
Itan's management believes that the company is not exposed to any significant credit risk with respect to its cash. This information is relevant to potential franchisees as it provides insight into how Itan manages its cash and defines cash equivalents for financial reporting purposes.