Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 2517

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 2517
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after December 15, 2020. The Company adopted the standard beginning in fiscal year 2023. The adoption did not have a material impact on
the Company’s consolidated financial statements.

In March 2022, the FASB issued ASU 2022-02, Financial
Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, addressing areas identified by the FASB
as part of its post-implementation review of its previously issued credit losses standard (ASU 2016-13) that introduced the current expected
credit losses (CECL) model. ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings by creditors that have
adopted the CECL model and enhances disclosure requirements for certain loan refinancings and restructurings made with borrowers experiencing
financial difficulty. This update requires an entity to disclose current-period gross write-offs for financing receivables and net investment
in leases by year of origination in the vintage disclosures. As the Company has already adopted ASU 2016-13, the new guidance was adopted
on January 1, 2023. The adoption of ASU 2022-02 did not have a material impact on the Company’s consolidated financial statements.

In June 2022, the FASB issued ASU 2022-03, Fair
Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies
that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security
and, therefore, is not considered in measuring fair value. This update also clarifies that an entity cannot, as a separate unit of account,
recognize and measure a contractual sale restriction and requires certain disclosures for equity securities subject to contractual sale
restrictions. ASU 2022-03 is effective for the Company in the fiscal year beginning after December 15, 2023. The Company adopted the standard
beginning in fiscal year 2024. The adoption did not have a material impact on the Company’s consolidated financial statements.

F-15

Recently Issued Accounting Standards Not Yet
Adopted

In December 2024, the FASB issued ASU No. 2024-03,
Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statements