Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 2516

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 2516
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able segments. We adopted ASU No. 2023-07 effective December 31, 2024. As a result we have included
additional information related to the required disclosures within Note 12 to our consolidated financial statements.

F-14

In October 2023, the FASB issued ASU 2023-06,
Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative, which
incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification (“Codification”). The
amendments are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users
to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to
the requirements, and align the requirements in the Codification with the SEC’s regulations. ASU 2023-06 will become effective for
each amendment on the effective date of the SEC’s corresponding disclosure rule changes. 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.

In June 2016, the FASB issued Accounting Standards
Update (“ASU”) 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments, that changes the impairment model for most financial assets and certain other instruments. For receivables, loans and
other instruments, entities will be required to use a new forward-looking “expected loss” model that generally will result
in the earlier recognition of allowance for losses. In addition, an entity will have to disclose significantly more information about
allowances and credit quality indicators. The new standard was effective for the Company for fiscal years beginning after December 15,
2022. 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 August 2020, the FASB issued ASU 2020-06 that,
among other updates, simplifies the guidance in ASC 815-40, Derivatives and Hedging: Contracts in Entity’s Own Equity, by
removing certain criteria that must be satisfied in order to classify a contract as equity. The ASU is effective for smaller reporting
companies for fiscal years beginning after December 15, 2023 and early adoption is permitted, but no earlier than fiscal years beginning