Company: IWSH
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001214659-25-011922
Chunk: 6

Company: Wright Investors Service Holdings, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 6
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 Statements of Operations. Significant expense categories, including compensation and benefits, other operating expenses, and interest and other income, net are included on the Company's Condensed Consolidated Statements of Operations.

4.New accounting standards

In November 2023, the Financial Accounting Standards
Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Improvements to Income Tax Disclosures, which
requires entities to disclose disaggregated information about their effective tax rate reconciliations as well as expanded information
on income taxes by jurisdiction. The standard is effective for fiscal years beginning after December 15, 2024, on a prospective basis.
The Company discloses its income tax rate reconciliation in its annual consolidated financial statements only and does not expect the
adoption to have a material impact on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03,
Income Statement Reporting-Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement
Expenses. The standard update improves the disclosures about a public business entity’s expenses by requiring more detailed information
about the types of expenses (including compensation and benefits and other operating expenses) included within income statement expense
captions. The guidance will be effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods
beginning after December 15, 2027. Early adoption is permitted. The standard will be applied on a prospective basis, with retrospective
application permitted. The Company is currently evaluating the impact of adoption of the standard on its financial statement disclosures.

5.Investment valuation

The
Company carries its investments at fair value. Fair value is an estimate of the exit price, representing the amount that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants (i.e., the exit price at the measurement
date). Fair value measurements are not adjusted for transaction costs.

A
fair value hierarchy provides for prioritizing inputs to valuation techniques used to measure fair value into three levels:

Level
1Unadjusted quoted prices in active markets for identical assets or liabilities.

Level
2Inputs other than quoted market prices that are observable, either directly or indirectly, and reasonably available. Observable inputs
reflect the assumptions market participants would use in pricing the asset or liability and are developed based on market data obtained
from sources independent of the Company.

Level
3Unobservable inputs. Unobservable inputs reflect