Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 497

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 5
Chunk 497
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 measured at the present
value of the lease payments. ASU 2016-02 requires recognition in the statement of operations of a single lease cost that is calculated
as a total cost of the lease allocated over the lease term, generally on a straight-line basis.

Convertible
Debt

The
Company has adopted Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic
470-20), which removed certain separation models in Subtopic 470-20. Under the amendments in ASU 2020-06, the embedded conversion features
no longer are separated from the host contract for convertible instruments with conversion features that are not required to be accounted
for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital.
Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost.

Recent
Accounting Pronouncements

In
June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13,
Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”).
ASU 2016-13 significantly changes how entities measure credit losses for most financial assets, including accounts and notes receivables.
ASU 2016-13 will replace the current “incurred loss” approach with an “expected loss” model, under which companies
will recognize allowances based on expected rather than incurred losses. Entities will apply the provisions of ASU 2016-13 as a cumulative-effect
adjustment to retained earnings as of the beginning of the first reporting period in which ASU 2016-13 is effective. As a small business
filer, ASU 2016-13 will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022. The
Company adopted ASU 2016-13 effective January 1, 2023. The adoption of ASU 2016-13 did not have a material effect on the Company’s
financial statements and related disclosures.

In
November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment
Disclosures. The amended guidance requires incremental reportable segment disclosures, primarily about significant