What accounting standard has Pearce Bespoke adopted regarding uncertainty in income taxes?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
okeTM mark ("Mobile Franchise"). A Mobile Franchise is a mobile unit from which the franchisee will sell quality custom men's and women's clothing and accessories.
Note 2 – Summary of Significant Accounting Policies
Basis of A
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
Based on the 2025 Pearce Bespoke Franchise Disclosure Document, the specific accounting standard adopted for uncertainty in income taxes is not explicitly detailed within the provided excerpts. However, Note 2 to the financial statements indicates that Pearce Bespoke uses the accrual basis of accounting in accordance with U.S. GAAP (Generally Accepted Accounting Principles). U.S. GAAP provides the overall framework for their accounting practices.
While the FDD mentions adherence to U.S. GAAP, it does not elaborate on the specific standards applied for uncertain tax positions. This means the financial statements are prepared following broad accounting principles recognized in the United States.
A prospective franchisee should directly ask Pearce Bespoke's management or refer to the full audited financial statements for detailed information on the accounting policies related to uncertainty in income taxes. This will provide a clearer understanding of how Pearce Bespoke handles potential tax liabilities and their impact on the company's financial position.