Company: OSRH
Filing Date: 2025-01-24
Form Type: S-4/A
Source: 0001213900-25-006139
Chunk: 228

Company: OSR Holdings, Inc.
Filing Date: 2025-01-24
Form: S-4/A
Chunk 228
---
. GAAP, OSR Holdings classifies all leases as an operating lease in accordance with ASC 842. This treatment under U.S. GAAP results in straight-line expense being incurred over the lease term, as opposed to IFRS, which generally yields a “front-loaded” expense recognized in earlier years of the lease. 
 IFRS provides an exemption allowing a lessee to not apply the lease accounting guidance to leases of low-value assets. If a lessee elects not to apply the lease accounting guidance, no right-of-use asset or lease liability is recognized, and lease payments are generally expensed on a straight-line basis over the lease term. Unlike IFRS, there is no recognition exemption for leases based on the value of the underlying asset under U.S. GAAP. The Company applies low-value lease (less than USD $5,000) exemption as its accounting policy for both IFRS and U.S. GAAP as the amount low-value leases, in aggregate or individually, is immaterial.             |
| Inventory |     | OSR Holdings’ inventory mainly consists of merchandise goods and the Company provides valuation allowance. OSR Holdings had recovery of the inventory valuation allowance.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 While U.S. GAAP prohibits reversing any inventory write-downs (unless the recovery of the inventory occurred during the same fiscal year in which the write-down occurred), IFRS permits reversing write-downs, up to the original amount of the write-down. The recovery of inventory write-downs the Company recognized under IFRS was immaterial thus no significant difference between U.S. GAAP and IFRS exists within unaudited pro forma condensed combined financial information.                                                                                                                                                                                      |

Based on the Company’s assessment of significant and material accounting areas, other than described above, OSR Holdings concludes no material or significant differences between IFRS to U.S. GAAP on its financial statements. OSR Holdings further concludes that other areas of accounting are materially and consistently applied in conformity with U.S. GAAP. Note 3 — Foreign currency translation OSR Holdings uses Korean Won (“KRW”) as its functional currency. The Company’s consolidated financial statements have been translated into US$, the reporting currency. Assets and liabilities accounts are translated using the exchange rate at each reporting period end date. Equity accounts are translated at historical rates. Income and expense accounts are translated at the average rate of exchange during the reporting period. The resulting translation adjustments are reported under other comprehensive income. Gains and losses resulting from the translations of