What accounting standard update is Monicals Pizza's credit policy subject to?

According to the 2025 Monicals Pizza Franchise Disclosure Document, the company's short-term investment policies are subject to Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 320, Investments-Debt Securities. This specifically relates to how Monicals Pizza handles certificates of deposit held for investment with an original maturity greater than three months.

Monicals Pizza carries these certificates of deposit at amortized cost and reports them as short-term investments on their consolidated balance sheets. However, the company does not consider the types of certificates of deposit they invest in as debt securities under FASB ASC 320. This means that while they are treated as short-term investments for balance sheet purposes, they are not subject to the same regulatory requirements as traditional debt securities.

For a prospective franchisee, this information is relevant for understanding how Monicals Pizza manages its short-term investments and ensures compliance with accounting standards. While franchisees may not directly handle these specific investments, understanding the financial policies of the parent company can provide insight into the overall financial management and stability of the Monicals Pizza franchise system.