Company: OSRH
Filing Date: 2025-01-24
Form Type: S-4/A
Source: 0001213900-25-006139
Chunk: 650

Company: OSR Holdings, Inc.
Filing Date: 2025-01-24
Form: S-4/A
Chunk 650
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2.8 Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short -term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. For the statement of cash flows presentation purposes, cash and cash equivalents also includes bank overdrafts, which are shown within borrowings in current liabilities on the statement of financial position. 2.9 Financial instruments A financial instrument is any contract that allows a financial asset to be created for one of the parties to the transaction and a financial liability or equity instrument to be created for the counterparty. The Group classifies financial assets at subsequent initial recognition as financial assets at amortized cost, financial assets at fair value through other comprehensive income (“FVOCI”) and financial assets at fair value through profit or loss (“FVTPL”). Financial assets Initial recognition and measurement The classification of a financial asset at initial recognition depends on the nature of the contractual cash flows of the financial asset and the business model of the Group to manage the financial asset. Except for trade receivables that do not contain significant financial elements or that are accounted for using the practical simplification method, the Group initially measures financial assets at fair value plus, and if not for financial assets at FVTPL, transaction costs. To measure a financial asset at amortized cost or FVOCI, the cash flows must consist of sole payments of principal and interest (“SPPI”) only. This assessment is called SPPI testing and is performed at the individual item level. The Group’s business model for the management of financial assets involves the management of financial assets to generate cash flows. The business model determines whether the source of the cash flows is the receipt, sale or both of the contractual cash flows of the financial asset. Purchases or sales of financial assets (structured transactions) that are required to transfer financial assets within the time frame set by the market arrangement or regulation are recognized on the transaction date. That is, the date the Group agrees to buy or sell financial assets.

F-101

2. Significant accounting policies (cont.) Subsequent measurement For subsequent measurement, financial assets are classified into the following four categories: •Financial assets at amortized cost (debt instrument) •Financial assets at FVOCI reclassified cumulative gain or loss to profit or loss (debt instrument) •Financial assets at FVOCI for which the cumulative gain or loss on removal is not re