Company: LSEB
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001199835-25-000233
Chunk: 70

Company: LSEB Creative Corp.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 70
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 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 income in the years in which those temporary
differences are expected to be recoverable or settled. The effect of a change in tax rates is recognized as income or expense in the
period of the change. A valuation allowance is established, when necessary, to reduce deferred income tax assets to the amount that is
more likely than not to be realized.

Revenue
Recognition

The
Company recognizes revenue in accordance with ASC-606 by,

    ●
    identifying
    the contract(s) with a customer,

    ●
    identifying
    the performance obligations in the contract,

    ●
    determining
    the transaction price,

    ●
    allocating
    the transaction price to the performance obligations in the contract and

    ●
    recognizing
revenue when the performance obligation is satisfied.

    Page | 9

    LSEB
    Creative Corp.
  
    Notes
    to Consolidated Financial Statements
  
    For
    the Years Ending March 31, 2025 and 2024

    4.
    SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES (Continued.)

Accordingly,
the Company recognizes revenue when performance obligations under