Company: EUDAW
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001641172-25-006627
Chunk: 125

Company: EUDA Health Holdings Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 19
Chunk 125
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 units within the entity at which goodwill is monitored for internal management
purposes. The Company adopted ASU 2017-04 in 2022, which primary goal is to simplify the goodwill impairment test and provide cost savings
for all entities. This is accomplished by removing the requirement to determine the fair value of individual assets and liabilities in
order to calculate a reporting unit’s “implied” goodwill under current GAAP.

The
amendments in ASU 2017-04 eliminate Step 2 of the goodwill impairment test. As such, an entity will perform its annual, or interim, goodwill
impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment
charge for the amount by which the reporting unit’s carrying amount exceeds its fair value. If fair value exceeds the carrying
amount, no impairment should be recorded. Any loss recognized should not exceed the total amount of goodwill allocated to that reporting
unit. Impairment losses on goodwill cannot be reversed once recognized.

EUDA
HEALTH HOLDINGS LIMITED AND SUBSIDIARIES

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, unless stated otherwise)

When
measuring a goodwill impairment loss, an entity should consider the income tax effects from any tax deductible goodwill on the carrying
amount of the reporting unit. The ASU contains an illustration of the simultaneous equations method to demonstrate this, which reflects
a deferred tax benefit from reducing the carrying amount of tax-deductible goodwill relative to the tax basis.

An
entity may still perform the optional qualitative assessment for a reporting unit to determine if it is more likely than not that goodwill
is impaired. However, this ASU eliminates the requirement to perform a qualitative assessment for any reporting unit with zero or negative
carrying amount. Therefore, the same one-step impairment assessment will apply to all reporting units.

For
the year ended December 31, 2022, management evaluated the recoverability of goodwill by performing qualitative assessment on the two
reporting units and determine that it is more likely than not that the fair value of each reporting unit is less than its carrying amount.
Therefore, management performed quantitative assessment, fully impairment loss on goodwill of $ 971,229 no

Impairment
for long-lived assets

In
accordance with ASC 360-10, Long-lived assets, including property and equipment, intangible assets with finite lives, goodwill and
right of use assets