Company: JOCM
Filing Date: 2025-05-05
Form Type: 10-K
Source: 0001641172-25-008460
Chunk: 12

Company: JOCOM HOLDINGS CORP.
Filing Date: 2025-05-05
Form: 10-K
Item: Item 1
Chunk 12
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angible Asset

The Company follows the guidance according ASC Topic
350, “Testing Indefinite-Lived Intangible Assets for Impairment” paragraph 350-30-35-18, an intangible asset that is
not subject to amortization shall be tested for impairment annually. There is no legal, regulatory, contractual, competitive, economic,
or no foreseeable limit on the period of time over which it is expected to contribute to the cash flows of the Company, thus the useful
life of the asset shall be considered to be indefinite.

Plant and equipment 

Plant and equipment are stated at cost less accumulated
depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected
useful lives from the date on which they become fully operational.

    Categories
     
    Estimated useful life
  
    Renovation
     
    2 years

Expenditures for maintenance and repairs are expensed
as incurred. The gain or loss on the disposal of plant and equipment is the difference between the net sales proceeds and the carrying
amount of the relevant assets and is recognized in the statement of operations

Leases

Effective November 1, 2019, the Company adopted the
guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all
leases. The implementation of ASC 842 did not have a material impact on the Company’s consolidated financial statements and did
not have a significant impact on our liquidity. The Company adopted ASC 842 using a modified retrospective approach. (see Note 6).

Revenue recognition

In accordance with Financial Accounting Standards
Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts. ASC 606 creates
a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying
the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining
the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each
performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will
collect the consideration it is entitled to in exchange for the services it transfers to its clients.

Revenue is measured at the fair value of the consideration
received or receivable, net of discounts and taxes applicable to the revenue.