Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 555

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 8
Chunk 555
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 and expenses in the financial statements and accompanying
notes. Significant accounting estimates reflected in the Company’s consolidated financial statements include economic lives and
impairment of property, plant and equipment and allowance for doubtful accounts. Actual results could differ from those estimates and
such differences could affect the results of operations reported in future periods.

(d) Cash and Cash Equivalents

The Company considers all highly liquid investments
purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand
and cash at bank deposited in bank accounts in mainland China at December 31, 2024 and 2023. Cash balance in bank accounts in mainland
China are insured by the People’s Bank of China Financial Stability Department (“FSD”) where there is a RMB500,000 deposit
insurance limit for a legal entity’s aggregated balance at each bank. As a result, the amounts not covered by FSD were $25,931 and
$338,875 as of December 31, 2024 and 2023, respectively.

The Renminbi is not freely convertible into foreign
currencies. Under the PRC Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange
Regulations, the Company is permitted to exchange Renminbi for foreign currencies through banks that are authorized to conduct foreign
exchange business.

(e) Motor Vehicle

The Company has one motor vehicle, which is stated
at cost less accumulated depreciation and accumulated impairment losses. Cost represents the purchase price of the motor vehicle and other
costs incurred to bring the motor vehicle into its existing use. Maintenance and repairs are charged to expense.

Depreciation of the motor vehicle is provided
using the straight-line method over the estimated useful lives of 5 years with 5% residual value.

     F-7 

(f) Revenue Recognition

The Company’s revenue recognition policy
is compliant with ASC 606, Revenue from Contracts with Customers that revenue is recognized when a customer obtains control of promised
goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods.
In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts
with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for
those goods. The Company applies the following five-step model in order to determine this amount:

    (i)
    identification of the