Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 170

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 170
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amortization and any recorded impairment. Intangible assets are amortized using the straight-line approach over the estimated economic
useful lives of the assets as follows:

  Category        Estimated useful lives  
 ──────────────────────────────────────────
  Trade mark      25 years                
  Software        2 - 10 years            

F-10

FST Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In U. S. dollars, except for share and per
share data, or otherwise noted)

2. SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

(k) Long-term investments

The Group carries equity investment without readily
determinable fair values at cost and recognizes income as any dividends declared from distribution of investee’s earnings.

The Group reviews the equity investment without
readily determinable fair values for impairment whenever events or changes in circumstances indicate that the carrying value may no longer
be recoverable. An impairment loss is recognized in earnings equal to the difference between the investment’s carrying amount and
its fair value at the balance sheet date of the reporting period for which the assessment is made in accordance with ASC topic 321, Investments
 - Equity Securities.

(l) Operating
leases

The Group recognizes lease liabilities and corresponding
right-of-use assets on the balance sheet for leases. The Group has elected the package of practical expedients, which allows the Group
not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease; (2) lease classification
for any expired or existing leases as of the adoption date; and (3) initial direct costs for any expired or existing leases as of the
adoption date. Lastly, the Group elected the short-term lease exemption for all contracts with lease terms of 12 months or less. The Group
recognizes lease expense for short-term leases on a straight-line basis over the lease term.

Right-of-use assets represent the Group’s
right to use an underlying asset for the lease term and lease liabilities represent the Group’s obligation to make lease payments
arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of
the remaining future minimum lease payments. If the interest rate implicit in the Group’s leases is not readily determinable, the
Group utilizes its incremental borrowing rate, determined by class of underlying asset, to discount the lease payments. The operating
lease right-of-use assets also include lease payments made before commencement and exclude