The company classified revenue earned in two sources one from company-owned and the other one is franchised stores. Company-owned stores revenue is recognized in retail sales when a product is delivered or taken out by customers. Franchised Stores royalty is recognized as revenue from franchised stores. Retail sales of franchised stores are not included but royalty based on retails sales from the franchised store is recognized as revenues. Revenue from Domino's advertising contribution to DNAF is only utilized for promotional and advertising activities of franchised stores. Sale from supply chain centers is recognized when food is delivered to franchisees. The sale of equipment and supplies is recorded only when the shipment is complete to franchisees.

Long-lived assets like property, plant, and equipment, and capitalized software are recorded at cost. These assets are depreciated on the basis of their useful life which is calculated using previous experiences and available information. The fair value of the franchisee's assets and liabilities are determined by physical inspection of assets, historical information, and available information. Impairment of franchised stores is done annually and when a change in circumstances shows that the assets carrying amount is not recoverable anymore. Carrying amount of assets is determined by various analyses like the projection of undiscounted cash flows. Impairment of assets of company-owned stores is based on the operating market. For the impairment test, the asset's fair value is estimated if the carrying amount is more than expected future undiscounted cash flows. The impairment loss carrying amount is more than the estimated fair value of the asset and the asset is recorded in the books of accounts at estimated fair market value.

What is your opinion about the significant accounting policies and procedures presented?