Company: LSEB
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001199835-25-000233
Chunk: 289

Company: LSEB Creative Corp.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 2
Chunk 289
---

the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred
tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recoverable or settled. The effect of a change in tax rates is recognized as income or expense in the
period of the change. A valuation allowance is established, when necessary, to reduce deferred income tax assets to the amount that is
more likely than not to be realized.

Revenue
Recognition

The
Company recognizes revenue in accordance with ASC-606 by,

    ●
    identifying
    the contract(s) with a customer,

    ●
    identifying
    the performance obligations in the contract,

    ●
    determining
    the transaction price,

    ●
    allocating
    the transaction price to the performance obligations in the contract and

    ●
    recognizing
revenue when the performance obligation is satisfied.

    Page | 9

    LSEB
    Creative Corp.
  
    Notes
    to Consolidated Financial Statements
  
    For
    the Years Ending March 31, 2025 and 2024

    4.
    SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES (Continued.)

Accordingly,
the Company recognizes revenue when performance obligations under the terms of the contracts are satisfied. Our performance obligations
primarily consist of delivering products to our customers. Control is transferred upon providing the products to customers upon shipment
of our products to the consumers from our ecommerce sites. Once control is transferred to the customer, we have completed our performance
obligation.

Equipment

Equipment
is stated at cost less accumulated depreciation and depreciated over their estimated useful lives at the following rate and method.

    Furniture
    and fixtures
     
    20%
    per annum - declining balance method
  
    Computer
     
    30%
    per annum - declining balance method

Routine
repairs and maintenance are expensed as incurred. Improvements, that are betterments, are capitalized at cost. The Company recognizes
full quarter’s depreciation in the quarter when the asset is acquired.

Recently
Issued Accounting Pronouncements

In
June 2016, the FASB issued “ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on
Financial Instruments.” The standard’s main goal is to improve financial reporting by requiring earlier recognition