Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 255

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 255
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Adoption

In November 2024, the Financial Accounting
Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, “Disaggregation of Income
Statement Expenses, which requires public companies to disaggregate key expense categories such as inventory purchases, employee compensation
and depreciation in their financial statements. Further, in January 2025, the Financial Accounting Standards Board (“FASB”)
issued Accounting Standards Update No. 2025-01, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation
Disclosures (Subtopic 220-40): Clarifying the Effective Date” which clarifies the effective date of ASU 2024-03. The guidance is
effective for all public entities with fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning
after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact that adoption of the provisions of ASU 2024-03
will have on the Company’s Condensed Consolidated Financial Statements.

In December 2024, the Financial Accounting
Standards Board (“FASB”) issued Accounting Standards Update No. 2024-03, “Debt—Debt with Conversion and Other
Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments”. The amendments in this ASU are effective for annual
reporting periods beginning after December 15, 2025 (and interim reporting periods within those annual reporting periods). Early adoption
is permitted as of the beginning of a reporting period if the entity has also adopted ASU 2020-06 for that period. This update does not
have any impact on the Company’s Condensed Consolidated Financial Statements.

In November 2023, the Financial Accounting
Standards Board (“FASB”) issued Accounting Standards Update No. 2023-07, “Segment Reporting (ASC 280): Improvements
to Reportable Segment Disclosures” (“ASU 2023-07”). The guidance is effective for fiscal years beginning after December
15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. This update does not
have any impact on the Company’s Condensed Consolidated Financial Statements.

In December 2023, the FASB issued
ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax