Company: SDAWW
Filing Date: 2025-05-21
Form Type: 6-K
Source: 0001213900-25-046449
Chunk: 11

Company: SunCar Technology Group Inc.
Filing Date: 2025-05-21
Form: 6-K
Chunk 11
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gregation Disclosures (Subtopic 220-40): Disaggregation
of Income Statement Expenses (“ASU 2024-03”), and in January 2025, the FASB issued Accounting Standards Update No. 2025-01,
Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date
(“ASU 2025-01”). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well
as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified
by ASU 2025-01, is effective for us for our annual reporting for fiscal 2028 and for interim period reporting beginning in fiscal 2029
on a prospective basis. Both early adoption and retrospective application are permitted. The Group is currently evaluating the impact
that the adoption of these standards will have on its consolidated financial statements and disclosures.

In November 2024, the FASB issued ASU 2024-04,
Debt–Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversion of Convertible Debt Instruments (“ASU 2024–04”),
which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as
an induced conversion. ASU 2024-04 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting
periods within those annual reporting periods. Early adoption is permitted for all entities that have adopted the amendments in Update
2020-06. The Group is in the process of evaluation the impact of adopting this new guidance on its consolidated financial statement.

In February 2025, the FASB issued ASU 2025-02,
Liabilities (405): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 122 (“ASU 2025-02”) amends the
Accounting Standards Codification to remove the text of SEC Staff Accounting Bulletin (“SAB”) 121 “Accounting for Obligations
to Safeguard Crypto-Assets an Entity Holds for its Platform Users” as it has been rescinded by the issuance of SAB 122. ASU 2025-02
is effective immediately and is not expected to have an impact on the Group’s financial statements.

Other accounting standards that have been issued
by