Company: JL
Filing Date: 2025-05-20
Form Type: 20-F/A
Source: 0001213900-25-045507
Chunk: 194

Company: J-Long Group Ltd
Filing Date: 2025-05-20
Form: 20-F/A
Chunk 194
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The assets’ useful lives
are reviewed, and adjusted if appropriate, at the end of each reporting period.

An item of property, plant
and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying
amount of the item) is included in consolidated statements of operations and comprehensive income in the period in which the item is derecognized.

Gains or losses on disposals
are determined by comparing proceeds with carrying amount and are recognized within “Other income (expense)” in the consolidated
statements of operations and comprehensive income.

F - 14 J-LONG GROUP LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2024, 2023 AND 2022 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

Impairment of long lived assets

The Company accounts
for impairment of long-lived assets in accordance with Accounting Standards Codification (“ASC”) 360, Property, 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 did not record any
impairment