Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 235

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 19
Chunk 235
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 and its fair value. Assets to be disposed of and for which there is a committed plan of disposal,
whether through sale or abandonment, are reported at the lower of carrying value or fair value less costs to sell.

There wasnoimpairment loss recognized
for the years ended September 30, 2022, 2023 and 2024.

Lease

The Company adopted this ASU and related
amendments as of October 1, 2020 under the modified retrospective approach and elected to adopt the following lease policies in conjunction
with the adoption of ASU 2016-02: the Company elected to apply the package of practical expedients for existing arrangements entered
into prior to October 1, 2021 to not reassess (a) whether an arrangement is or contains a lease, (b) the lease classification applied
to existing leases, and (c) initial direct costs. No cumulative-effect adjustment to retained earnings was required upon adoption of
Topic 842 because payments made under operating leases are also recognized as an expense on a straight-line basis over the lease term
prior to the adoption of ASC 842. The Company makes an accounting policy election not to separate non-lease components to measure the
lease liability and lease asset. For operating leases with a term of one year or less, we have elected not to recognize a lease liability
or ROU asset on our consolidated balance sheets. Instead, we recognize the lease payments as expenses on a straight-line basis over the
lease term.

Operating leases

Upon adoption of ASC 842, the lease liabilities
are recognized upon lease commencement for operating leases based on the present value of lease payments over the lease term, operating
leases are recognized as right-of-use assets (“ ROU”) and lease liabilities in the consolidated balance sheets if the initial
lease term is greater than 12 months. For leases with an initial term of 12 months or less the Company recognizes those lease payments
on a straight-line basis over the lease term.

ROU assets represent the right to use
an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease.
Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the
lease term. As most of the Company’s leases do not provide an implicit rate, management uses the incremental borrowing rate based
on the information available at commencement date in determining the present value of lease payments. Management uses the implicit rate
when readily determin