On what basis are the consolidated financial statements for Petro Stopping Center prepared?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
pany and those of its subsidiaries, and information in this document reflects 100% of the assets and operations of the Company and its subsidiaries that were consolidated at the date or for the periods indicated, including non-controlling interests.
The accompanying consolidated financial statements and the supporting footnotes are the responsibility of management. The Company's principal business is energy, involving the worldwide exploration, production, and sale of crude oil and natural gas, the transportation of oil, natural gas, and products, and the manufacture and sale of petroleum products.
Events subsequent to December 31, 2024 were evaluated through the date these consolidated financial statements were available to be issued on March 6, 2025.
1. Material accounting policy information, significant judgements, estimates and assumptions
Authorization of financial statements and statement of compliance with International Financial Reporting Standards
The consolidated financial statements of the Company and its subsidiaries (collectively referred to as the Company) for the year ended December 31, 2024 have been prepared in accordance with United Kingdom adopted international accounting standards and IFRS Accounting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (EU) and in accordance with the provisions of the UK Companies Act 2006 as applicable to companies reporting under international accounting standards. IFRS as adopted by the UK does not differ from IFRS as adopted by the EU. IFRS as adopted by the UK and EU differs in certain respects from IFRS as issued by the IASB. The differences have no impact on the Company's consolidated
Source: Item 23 — RECEIPTS **RECEIPTS (FDD pages 87–131)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the consolidated financial statements for the company and its subsidiaries for the year ended December 31, 2024, have been prepared in accordance with United Kingdom adopted international accounting standards and IFRS Accounting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (EU) and in accordance with the provisions of the UK Companies Act 2006. The financial statements are presented in US dollars, with all values rounded to the nearest million dollars, unless otherwise indicated. These standards ensure uniformity and comparability in financial reporting across different companies and countries.
For a potential Petro Stopping Center franchisee, this means that the financial information presented in the FDD is based on internationally recognized and consistent accounting principles. This allows for a more transparent and reliable assessment of the company's financial health and performance. Understanding the basis of preparation helps franchisees to interpret the financial statements accurately and make informed decisions.
It is important to note that while IFRS as adopted by the UK does not differ from IFRS as adopted by the EU, both differ in certain respects from IFRS as issued by the IASB. However, the document states that these differences have no impact on the company's consolidated financial statements for the years presented. Additionally, the consolidated financial statements have been prepared on a going concern basis, indicating an assumption that the company will continue to operate in the foreseeable future. The company also has Internal Finance Accounts with a bp affiliate due to the bp group centralized cash management, and these IFA movements are presented as investing and financing activities in the company's Consolidated Cash Flow Statement.