Company: VPLM
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006777
Chunk: 8

Company: Voip-pal.com Inc
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on
their initial recognition, except for those arising from certain related party transactions which are accounted for at the transferor’s
carrying amount or exchange amount.

Financial
assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income. Financial
assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for-trading
are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale
are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income until realized, or if an
unrealized loss is considered other than temporary, the unrealized loss is recorded in income.

    8

VOIP-PAL.COM
INC.

Notes
to the Interim Condensed Consolidated Financial Statements

(Unaudited
– prepared by management)

(Expressed
in United States Dollars)

December
31, 2024

    NOTE
    3.
    SIGNIFICANT
    ACCOUNTING POLICIES (CONT’D)

Fair
Value of Financial Instruments (cont’d)

U.S.
GAAP establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair
value measurements. Fair value is defined as the amount that would be received for an asset or paid to transfer a liability (i.e., an
exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants
on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of
unobservable inputs. The standard describes the following fair value hierarchy based on three levels of inputs, of which the first two
are considered observable and the last unobservable, that may be used to measure fair value:

Level
1: Quoted prices in active markets for identical assets and liabilities.

Level
2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities;
quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for
substantially the full term of the assets or liabilities.

Level
3: Unobservable inputs supported by little or no market activity and that are significant to the fair value of the assets or liabilities.