Company: CRAC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111020
Chunk: 36

Company: Crown Reserve Acquisition Corp. I
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 36
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 disclose certain executive compensation related items such as the correlation between executive compensation and performance
and comparisons of the Chief Executive Officer’s compensation to median employee compensation. These exemptions will apply for
a period of five years following the completion of our initial public offering or until we are no longer an “emerging growth
company,” whichever is earlier.

22

Critical Accounting
Policies
 
The preparation of condensed
financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent
assets and liabilities at the date of the financial statements, and income and expenses during the periods reported. Actual results could
materially differ from those estimates. We have identified the following critical accounting policies:
 
Class A Ordinary
Shares Subject to Possible Redemption
 
We account for our ordinary
shares subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic
480 “Distinguishing Liabilities from Equity.” Ordinary shares subject to mandatory redemption are classified as a liability
instrument and measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights
that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our
control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. Our ordinary
shares feature certain redemption rights that are considered to be outside of our control and subject to occurrence of uncertain future
events. Accordingly, ordinary shares subject to possible redemption are presented at redemption value as temporary equity, outside of
the shareholders’ equity section of our condensed balance sheets.
 
Net Income Per Ordinary
Share
 
We apply the two-class
method in calculating earnings per share. Net income per ordinary share, basic and diluted for Class A redeemable ordinary shares is
calculated by dividing the interest income earned on the Trust Account by the weighted average number of Class A redeemable ordinary
shares outstanding since original issuance. Net income per ordinary share, basic and diluted for Class A and Class B non-redeemable ordinary
shares is calculated by dividing the net income, less income attributable to Class A redeemable ordinary shares, by the weighted average
number of Class A and Class B non-redeemable ordinary shares outstanding for the periods presented.
 
Recent Accounting
Standards
 
In November 2023,
the FASB issued ASU 2023-