Company: LSEB
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001199835-25-000233
Chunk: 436

Company: LSEB Creative Corp.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 5
Chunk 436
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    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, is classified as a Level 1 financial instrument. The Company’s bank accounts
are maintained with financial institutions of reputable credit, therefore, bear minimal credit risk.

Stock
Based Compensation

The
Company accounts for share-based payments in accordance with the provision of ASC 718, which requires that all share-based payments issued
to acquire goods or services, including grants of employee stock options, be recognized in the statement of operations based on their
fair values, net of estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary,
in subsequent periods if actual forfeitures differ from those estimates. The Company issues compensatory shares for services including,
but not limited to, executive, management, accounting, operations, corporate communication, financial and administrative consulting services.

Income
Taxes

The
Company accounts for income taxes in accordance with ASC 740. The Company provides for federal and provincial income taxes payable, as
well as for those deferred because of the timing differences between reporting income and expenses for financial statement purposes versus
tax purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between
the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred
tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable