Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 27

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 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 May 2025, the FASB issued
ASU 2025-03 which revises the guidance in ASC 805 on identifying the accounting acquirer in a business combination in which the
legal acquiree is a variable interest entity (VIE). ASU 2025-03 is effective for fiscal years beginning after December 15, 2026,
including interim periods within those fiscal years. Early adoption is permitted. The amendments in ASU 2025-03 must be applied
prospectively to any business combination that occurs after the initial adoption date. The Company is evaluating the impact that
adoption of the provisions of ASU 2025-03 will have on the Company’s Condensed Consolidated Financial Statements.

In May 2025, the FASB issued
ASU 2025-04 which clarifies the guidance in both ASC 606 and ASC 718 on the accounting for share-based payment awards that are granted
by an entity