Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 270

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 2
Chunk 270
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 considers assumptions that market participants would use
when valuing the asset or liability. Authoritative literature provides a fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its
entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows:

Level 1

Level 1 applies to assets or liabilities
for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities
for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, such
as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with
insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable
or can be derived principally from, or corroborated by observable market data.

 Level 3

Level 3 applies to assets or liabilities
for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the
assets or liabilities.

(j) Fair Value of Financial Instruments

The Company’s financial instruments consist
primarily of cash and cash equivalents, other receivables, accounts payable, and other payables and accruals. The carrying amounts of
these balances approximate their fair values due to the short-term maturities of these instruments.

(k) Income Taxes

Income tax expense comprises current and deferred
taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive
income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable
on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable
with respect to previous periods.

The Company accounts for income taxes using the
asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the
financial reporting and tax basis of assets and liabilities, net of operating loss carry forwards and credits, by applying enacted tax
rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change
in tax rates is recognized in the statements of operations in the period of change.

     F