Company: CHOW
Filing Date: 2025-03-19
Form Type: DRS/A
Source: 0001493152-25-010898
Chunk: 242

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-03-19
Form: DRS/A
Chunk 242
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 rate used in the recognition of right-of-use assets and lease liabilities under ASC 842 (Leases), which is determined  
 based on the Company’s cost of borrowing, adjusted for the specific term and the economic environment.                 |
| ● | Allowance for expected                                                                                                 
 credit losses on accounts receivable under ASC 326 (Credit Losses), which is determined based on historical collection 
 experience, the creditworthiness of individual customers, and expected changes in macroeconomic conditions.            |
| ● | Useful lives of property                                                                                               
 and equipment, which are determined based on the Company’s experience with similar assets and expected usage patterns. |
| ● | Valuation allowance                                                                                                    
 for deferred tax assets under ASC 740 (Income Taxes), which is based on management’s assessment of the likelihood      
 of future taxable income and the ability to utilize deferred tax assets before expiration.                             |
| ● | Estimated progress towards                                                                                             
 the satisfaction of performance obligations under ASC 606 (Revenue from Contracts with Customers), which considers the 
 nature of the services provided and the terms of customer contracts.                                                   |

These estimates involve significant judgment and are subject to uncertainty, particularly in areas affected by market volatility, economic conditions, or customer-specific factors. Management regularly reviews and updates its estimates based on changes in these conditions and other relevant factors.

Given the inherent uncertainty in estimating future outcomes, actual results may differ from these estimates, and such differences could have a material impact on the Company’s financial position and results of operations. Management performs sensitivity analysis on critical accounting estimates to assess the potential impact of changes in assumptions and to ensure that the estimates remain reasonable under a range of possible outcomes.

(d) Functional currency and foreign currency translation

The Company uses the Hong Kong dollar (“HK$”) as its reporting currency. The functional currency of the Company and its subsidiaries is the HK$, as determined based on the criteria outlined in Accounting Standards Codification (“ASC”) Topic 830, Foreign Currency Matters. The functional currency is assessed based on the primary economic environment in which the Company and its subsidiaries operate. The Company periodically reviews its functional currency determination to ensure that it continues to reflect the underlying economic conditions of its operations.

| F-45 |

Transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are remeasured into the functional currency using the exchange rate at the balance sheet date, while non-monetary items measured at historical