What accounting standard does Zoomin Groomin follow when accounting for legal matters and other contingencies?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Zoomin Groomin USA LLC as of December 31, 2024, and the results of its operations and its cash flows for the three years then ended, in accordance with the generally accepted accounting principles in the United States of America.
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosures at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin FDD, the company prepares its financial statements in accordance with generally accepted accounting principles (GAAP) in the United States of America. This means that Zoomin Groomin adheres to a common set of accounting rules, standards, and procedures issued by the Financial Accounting Standards Board (FASB). These principles ensure that the financial statements are presented fairly and consistently, allowing for meaningful comparisons across different companies and industries.
Specifically, the notes to the financial statements included in the FDD highlight the use of estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosures at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
While the FDD confirms that Zoomin Groomin follows GAAP, it does not provide specific details on how legal matters and other contingencies are accounted for. Prospective franchisees should consult with Zoomin Groomin to understand the specific accounting policies related to legal matters and other contingencies to fully understand the financial reporting practices.