Company: FWFW
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002097
Chunk: 446

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 7A
Chunk 446
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 a bank with an initial
maturity of less than three months.

  (F) Investments

The
Company applies the cost method of accounting to investments when it does not have significant influence or a controlling interest in
the investee and the fair value of the investment is not readily determinable. Dividends on cost method investments received are recorded
as income.

The
Company assesses investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment
may not be recoverable. Management reviewed the underlying net assets of the investments during the year ended September 30, 2024 and
determined that the Company’ s proportionate economic interest in the investments indicate that the investments were not other
than temporarily impaired. The carrying value of our cost method investments is reported as “investments” on the consolidated
balance sheets. Note 4 contains additional information on our cost method investments.

    F-9

FLYWHEEL
ADVANCED TECHNOLOGY, INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

  (G) Fair value of financial instruments

FASB
Codification Topic 825 (ASC Topic 825), “Disclosure about Fair Value of Financial Instruments,” requires certain disclosures
regarding the fair value (“FV”) of financial instruments. The carrying amounts of accounts receivable, other current assets
and prepaid expenses, accounts payable, other payables and accrued liabilities and due to Company companies approximate their FVs because
of the short-term nature of the instruments. The management of the Company is of the opinion that the Company is not exposed to significant
interest or credit risks arising from these financial statements.

  (H) Foreign currency translation

The
Company’s consolidated financial statements are reported in United States dollars (“US$”), the Company’s reporting
currency, also the functional currency. The functional currency for the Company’s subsidiary organized in Hong Kong is Hong Kong
dollars (“HK$”). The functional currency for the Company’s subsidiary organized in Australian is Australian dollars
(“A$”). The translation of the functional currencies of the Company’s subsidiaries into US$ is performed for balance
sheet accounts using the exchange rates in effect as of the balance sheet date and for revenues and expense accounts using a monthly
average exchange rate prevailing during the respective period. The gains or losses resulting from such translation are reported as currency
translation adjustments under other comprehensive income (loss), net, under accumulated other comprehensive income (loss) as a separate
component of equity.

Monetary