Company: FVN
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001829126-25-005949
Chunk: 91

Company: Future Vision II Acquisition Corp.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 91
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 Topic 480, “Distinguishing Liabilities from Equity” (ASC 480).
Ordinary shares subject to mandatory redemption (if any) were classified as a liability instrument and will be measured at fair value.
Conditionally redeemable ordinary shares (including ordinary shares that features redemption rights that are either within the control
of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) were classified
as temporary equity. At all other times, ordinary shares were classified as stockholders’ equity. In accordance with ASC 480-10-S99,
the Company classified the ordinary shares subject to redemption outside of permanent equity as the redemption provisions are not solely
within the control of the Company.

Given that the 5,750,000 ordinary shares sold as part
of the units in the IPO were issued with other freestanding instruments (i.e., Rights), the initial carrying value of ordinary shares
classified as temporary equity has been allocated to the proceeds determined in accordance with ASC 470-20. If it is probable that the
equity instrument will become redeemable, the Company has the option to either (i) accrete changes in the redemption value over the period
from the date of issuance (or from the date that it becomes probable that the instrument will become redeemable, if later) to the earliest
redemption date of the instrument or (ii) recognize changes in the redemption value immediately as they occur and adjust the carrying
amount of the instrument to equal the redemption value at the end of each reporting period. The Company has elected the accretion method
(i) to recognize the changes in redemption value as a charge against retained earnings or, in the absence of retained earnings, by a charge
against additional paid-in-capital over an expected 18-month period, which is the initial period that the Company has to complete a Business
Combination.

For the three months ended June 30, 2025, the
Company reassessed the estimation of redemption value to more accurately reflect the terms of the related share agreements and articles
of association, which has affected the earnings per share and accretion to redemption value of the shares subject to possible redemption
for the three months ended June 30, 2025 as compared with the three months ended March 31, 2025.

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07,
Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures