Company: LSEB
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001199835-25-000233
Chunk: 185

Company: LSEB Creative Corp.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1B
Chunk 185
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 Basic earnings per share
includes no dilution and is computed by dividing net income or loss available to common stockholders by the weighted average number of
common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in
the earnings of an entity. Diluted earnings per share exclude all potentially dilutive shares if their effect is anti-dilutive. There
were no potentially dilutive shares outstanding as at each period end.

Inventory

Inventories
are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out basis. The net realizable value
is the estimated selling price in the ordinary course of business, less the cost of completion and selling expenses. As of March 31,
2025 the Company has $184,461 in inventory valued at cost. Inventory is finished goods excluding freight costs. The Company periodically
reviews its inventories and makes a provision as necessary to appropriately value goods that are obsolete, have quality issues, or are
damaged. The amount of the provision is equal to the difference between the cost of the inventory and its net realizable value based
upon assumptions about product quality, damages, future demand, selling prices, and market conditions. If changes in market conditions
result in reductions in the estimated net realizable value of its inventory below its previous estimate, the Company would increase its
reserve in the period in which it made such a determination.

In
addition, the Company provides for inventory shrinkage based on historical trends from actual physical inventory counts. Inventory shrinkage
estimates are made to reduce the inventory value for lost or stolen items. The Company performs physical inventory counts and cycle counts
throughout the year and adjusts the shrink reserve accordingly. As of March 31, 2025, the Company has no obsolescence provisions, damage
provisions, or shrinkage provisions.

Foreign
Currency Translation

The
functional currency of the Company is United States dollar. Transactions denominated in currencies other than the functional currency
are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities
denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. All exchange gains or
losses arising from translation of these foreign currency transactions are included in Statement of operations. The Company has not,
to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

Fair
Value of Financial Instruments