Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 242

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 19
Chunk 242
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 December 2023, the FASB
issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity’s
effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis
for annual periods beginning after December 15, 2025. Early adoption is also permitted for annual financial statements that have not yet
been issued or made available for issuance. Once adopted, this ASU will result in additional disclosures. The Group is currently assessing
the potential impact of the rule on our disclosures.

In March 2024, the FASB issued
ASU 2024-01, “ Compensation - Stock Compensation (Topic 718) - Scope Application of Profits Interest and Similar Awards” (“ ASU
2024-01”), which intends to improve clarity and operability without changing the existing guidance. ASU 2024-01 provides an illustrative
example intended to demonstrate how entities that account for profits interest and similar awards would determine whether a profits interest
award should be accounted for in accordance with Topic 718. Entities can apply the guidance either retrospectively to all prior periods
presented in the financial statements or prospectively to profits interest and similar awards granted or modified on or after the date
of adoption. ASU 2024-01 is effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods.
Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance.
The Group is currently evaluating the potential impact of adopting this guidance on Financial Statements.

In March 2024, the FASB issued
ASU 2024-02, “ Codification Improvements - Amendments to Remove References to the Concept Statements” (“ ASU 2024-02”).
ASU 2024-02 contains amendments to the FASB Accounting Standards Codification that remove references to various FASB Concepts Statements.
In most instances, the references are extraneous and not required to understand or apply the guidance. In other instances, the references
were used in prior Statements to provide guidance in certain topical areas. ASU 2024-02 is effective for fiscal years beginning after
December 15, 2024. Early adoption is permitted. The Group is currently evaluating the potential impact of adopting this guidance on Financial
Statements.

Except for the above-