Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 226

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 19
Chunk 226
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 the financial statements for both periods. After the Restructuring (“ Reorganization”),
the Company has13,125,000ordinary shares issued and outstanding.

The
discussion and presentation of financial statements herein assumes the completion of the Restructuring, which is accounted for retroactively
as if it occurred on October 1, 2020, and the equity has been retroactively adjusted to reflect the change as well.

Basis of Presentation and Principles
of Consolidation

The consolidated financial statements
include all accounts of the Company and its wholly owned subsidiaries (Collectively, the “ Company”) and have been prepared
in accordance with accounting principles generally accepted in the United States of America (“ US GAAP”). The consolidated
financial statements include the financial statements of the Company and its subsidiaries. All inter-company transactions and balances
between the Company and its subsidiaries are eliminated upon consolidation.

Measurement of credit losses on financial
instruments

The Company adopted ASU 2016-13, “ Financial
Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments”. This guidance replaced
the “incurred loss” impairment methodology with an approach based on “expected losses” to estimate credit losses
on certain types of financial instruments and requires consideration of a broader range of reasonable and supportable information to
inform credit loss estimates. The guidance requires financial assets to be presented at the net amount expected to be collected. The
allowance for credit losses is a valuation account that is deducted from the cost of the financial asset to present the net carrying
value at the amount expected to be collected on the financial asset.

The Company reviews accounts receivable
and contract assets on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual
balances. The loss-rate method is used to estimate the expected credit loss for accounts receivable and contract assets. The loss-rates
are estimated based on the age of the balances of accounts receivable, historical experience, current general economic conditions, future
expectations and customer specific quantitative and qualitative factors that may affect the customers’ ability to pay. The assessment
of the correlation among historical observed default rates, forecast economic conditions and expected credit losses is a significant
estimate. The amount of expected credit loss is sensitive to changes in circumstances and forecast economic conditions. The historical
credit loss experience and forecast of economic conditions may also not be representative of a customer’s actual default in the
future. As of September 30, 2023 and