Company: SPPL
Filing Date: 2025-04-08
Form Type: 20-F
Source: 0001641172-25-003217
Chunk: 124

Company: SIMPPLE LTD.
Filing Date: 2025-04-08
Form: 20-F
Item: Item 18
Chunk 124
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 made S$ 546,892 NIL NIL

Inventory

Inventories
are measured at the lower of cost and net realizable value. The cost of inventories is based on the first-in, first-out principle, and
includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them
to their existing location and condition.

SIMPPLE
LTD. AND ITS SUBSIDIARIES

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

2
Summary of significant accounting policies (cont’d)

Intangible
assets

Intangible
assets with finite lives are initially recorded at cost and amortized in a method which reflects the pattern in which the economic benefits
of the intangible assets are expected to be consumed or otherwise used up.

We
evaluate the recoverability of intangible assets with finite lives for possible impairment whenever events or circumstances indicate
that the carrying amount of such assets may not be recoverable. The recoverability of these assets is measured by a comparison of the
carrying amounts to the future discounted cash flows the assets are expected to generate from the use and eventual disposition. If such
review indicates that the carrying amount of intangible assets with finite lives is not recoverable, and the assets fair value is less
than the carrying amount, an impairment charge is recognized. We have not recorded any material impairment charges during the years presented.

The
intangible asset is amortized using the straight-line approach over the estimated useful life as follows:

Schedule of intangible asset estimated useful life

  Software              5 years  

Property
and equipment, net

Property
and equipment are stated at cost less accumulated depreciation and impairment if applicable. The Company computes depreciation using
the straight-line method over the estimated useful lives of the assets as follows:

Schedule of property and equipment estimated useful life

  Furniture                  3 years  
  Machineries                3 years  
  Office                     1 year   
  Renovation                 3 years  

The
cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is
included in the consolidated statement of income. Expenditures for maintenance and repairs are charged to earnings as incurred, while
additions renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates
the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives.

SIMPPLE
LTD. AND