Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 15

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 1
Chunk 15
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 an instrument, unrealized gains and losses for such instrument are reported in earnings at each subsequent reporting date.
Upfront costs and fees related to items for which the fair value option is elected shall be recognized in earnings as incurred
and not deferred.

Recently Adopted Accounting Standards

In November 2023, the Financial Accounting Standards
Board (“FASB”) issued ASU, No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which
requires public entities, including those with a single reportable segment, to: (i) provide disclosures of significant segment expenses
and other segment items if they are regularly provided to the chief operating decision maker, or the CODM, and included in each reported
measure of segment profit or loss; (ii) provide all annual disclosures about a reportable segment’s profit or loss and assets currently
required by Accounting Standards Codification 280, Segment Reporting, in interim periods; and (iii) disclose the CODM’s title and
position, as well as an explanation of how the CODM uses the reported measures and other disclosures. ASU No. 2023-07 does not change
how a public entity identifies its operating segments, aggregates those operating segments or applies the quantitative thresholds to
determine its reportable segments. The Company adopted ASU No. 2023-07 effective December 31, 2024.

Recently Issued Accounting Standards Not Yet
Adopted 

In May 2025, the FASB issued ASU 2025-03, Business
Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest
Entity. The amendments in this Update require an entity involved in an acquisition transaction effected primarily by exchanging equity
interests when the legal acquiree is a VIE that meets the definition of a business to consider the factors in paragraphs 805-10-55-12
through 55-15 to determine which entity is the accounting acquirer. The amendments in this Update are effective for all entities for
annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. The
Company is currently evaluating the impact that the adoption of this new standard will have on its consolidated financial statements.
A Variable Interest Entity (VIE) is a legal entity in which an investor holds a controlling interest that is not based on majority voting
rights.

In