Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 830

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 7A
Chunk 830
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 MARCH 31, 2025 AND 2024

In
November 2024, the FASB issued ASU 2024-03, the intent of which is to improve financial reporting and respond to investor input by requiring
public business entities to disclose additional information about certain expenses in the notes to financial statements in interim and
annual reporting periods. Among other provisions, the new standard requires disclosure of disaggregated amounts for expenses such as
employee compensation, depreciation, and intangible asset amortization included in each expense caption presented on the face of the
income statement. Public business entities are required to include certain amounts that are already required to be disclosed under GAAP
in the same disclosure as the other disaggregation requirements as well as a qualitative description of any amounts remaining in relevant
expense captions that are not separately disaggregated quantitatively. The new standard also requires disclosure of the total amount
of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. An entity is not precluded from
providing additional voluntary disclosures that may provide investors with additional decision-useful information. In January 2025, the
FASB issued ASU Update 2025-01, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40).”
The Board issued this Update to clarify the effective date of Accounting Standards Update 2024-03 to be effective for public business
entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027,
“Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income
Statement Expenses.” The amendments in the new standard should be applied either prospectively to financial statements issued for
reporting periods after the effective date or retrospectively to any or all prior periods presented in the financial statements. Management
does not expect this guidance to have a material impact to its consolidated financial statements or related disclosures.

In
May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810) (“ASU 2025-03”), which
clarifies the requirements for determining the accounting acquirer in the acquisition of a variable interest entity. ASU 2025-03 is effective
for annual periods beginning after December 15, 2026, and interim reporting periods within