Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 197

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 18
Chunk 197
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, Plant
and Equipment. (“ ASC 360”). Long-lived assets consist primarily of property, plant and equipment. In accordance
with ASC 360, the Company evaluates the carrying value of long-lived assets when it determines a triggering event has occurred,
or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When indicators
exist, recoverability of assets is measured by a comparison of the carrying value of the asset group to the estimated undiscounted
future net cash flows expected to be generated by the asset. Examples of such triggering events include a significant disposal of a
portion of such assets, and adverse change in the market involving the business employing the related assets. If such assets are
determined not to be recoverable, the Company performs an analysis of the fair value of the asset group and will recognize an
impairment loss when the fair value is less than the carrying amounts of such assets. The fair value, based on reasonable and
supportable assumptions and projections, require subjective judgments. Depending on the assumptions and estimates used, the
appraised fair value projected in the evaluation of long-lived assets can vary within a range of outcomes. The Company considers the
likelihood of possible outcomes in determining the best estimate for the fair value of the assets. The Company reviews the
impairment of its right-of-use assets consistent with the approach applied for its other long-lived assets. The Company did not
record any impairment charges for the years ended March 31, 2023, 2024 and 2025. There can be no assurance that future
events will not have impact on company revenue or financial position which could result in impairment in the future.

Contract liabilities

Contract liabilities were
recognized when the Company receives prepayment from customers resulting from purchase order. Contract liabilities will be recognized
as revenue when the products are shipped or delivered according to contract term. Contract liabilities were USD360,475and USD427,110as of March 31, 2024 and 2025, respectively. For the years ended March 31, 2024 and 2025, the beginning balance of contract
liabilities of USD226,761andUSD328,747were recognized as revenue.

Commitments and contingencies

In the normal course of
business, the Company is subject to contingencies, such as legal proceedings and claims arising out of its business, which cover a wide
range of matters. Liabilities for contingencies are recorded when it is probable that a liability