Company: LSEB
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001199835-25-000233
Chunk: 69

Company: LSEB Creative Corp.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 69
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 has not,
to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

Fair
Value of Financial Instruments

ASC
820 defines fair value, establishes a framework for measuring fair value and expands required disclosure about fair value measurements
of assets and liabilities. ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer
a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between
market participants on the measurement date. ASC 820-10 also establishes a fair value hierarchy, which requires an entity to maximize
the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels
of inputs that may be used to measure fair value:

    ●
    Level
    1 – Valuation based on quoted market prices in active markets for identical assets or liabilities.

    ●
    Level
    2 – Valuation based on quoted market prices for similar assets and liabilities in active markets.

    ●
    Level
    3 – Valuation based on unobservable inputs that are supported by little or no market activity, therefore requiring management’s
    best estimate of what market participants would use as fair value.

    Page | 8

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

    4.
    SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES (Continued.)

Fair
Value of Financial Instruments

In
instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy,
the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is
significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to
the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

Fair
value estimates discussed herein are based upon certain market assumptions and pertinent information available to management. The respective
carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these
instruments or interest rates that are comparable to market rates. These financial instruments include cash and accounts payable. The
Company’s cash, which is carried at fair value,