Company: EUDAW
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001641172-25-006627
Chunk: 55

Company: EUDA Health Holdings Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 5
Chunk 55
---
 these financial statements and
accompanying notes requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and
expenses, and related disclosure of contingent assets and liabilities. Estimates are based on historical experience and on various other
assumptions that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about
the carrying values of assets and liabilities that are not readily apparent from other sources. Certain accounting estimates are particularly
sensitive because of our significance to financial statements and because of the possibility that future events affecting the estimate
may differ significantly from management’s current judgments. We believe that the following most significant estimates and judgments
that effect the reported amount of assets, liabilities, revenues and expenses, and related disclosure in the preparation of our financial
statements.

  Allowance for credit losses  
  Income taxes                 

  36  

Allowance
for credit losses

Accounts
receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, which are due
after 30 days, in the normal course of business. Management reviews the adequacy of the allowance for credit losses on an ongoing basis,
using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial
condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary.
On January 1, 2023, the Company adopted the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments - Credit
Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for
the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology.

We
used a modified retrospective approach and the adoption does not have an impact on our consolidated financial statements. Our accounts
receivable are within the scope of ASC Topic 326. To estimate expected credit losses, we have identified the relevant risk characteristics
of the receivables which include size and nature. Receivables with similar risk characteristics have been grouped into pools. For each
pool, we consider the past collection experience, current economic conditions and future economic conditions (external data and macroeconomic
factors). This is assessed at each quarter based on our specific facts and circumstances. There have been no significant changes in the
assumptions since adoption