Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 201

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 18
Chunk 201
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 and excludes lease incentives. The Company’s lease
terms may include options to extend or terminate the lease. Renewal options are considered within the ROU assets and lease liabilities
when it is reasonably certain that the Company will exercise that option. Lease expenses for lease payments are recognized on a straight-line
basis over the lease term.

For operating leases with
a term of one year or less, the Company has elected not to recognize a lease liability or ROU asset on its consolidated balance sheets.
Instead, it recognizes the lease payments as expenses on a straight-line basis over the lease term. The Company has operating lease agreements
with insignificant non-lease components and have elected the practical expedient to combine and account for lease and non-lease components
as a single lease component.

Income taxes

The Company accounts for
income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences
between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases.

F-18

J-LONG GROUP LIMITED

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences
are expected to be reversed or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income
in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the
amount expected to be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.

The provisions of ASC 740-10-25,
“ Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement
recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance
on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting
for interest and penalties associated with tax positions, and related disclosures.

The Company did not accrue
any liability, interest or penalties related to uncertain tax positions in its provision for income taxes line of its consolidated
statements of income for the years ended March 31, 2025, 2024 and 2023, respectively. The Company does not expect that
its assessment regarding unrecognized tax positions will materially change over the next 12 months.

Earnings per share

Basic earnings