Company: OWLS
Filing Date: 2025-01-24
Form Type: DRS/A
Source: 0000950123-25-000547
Chunk: 377

Company: OBOOK HOLDINGS INC.
Filing Date: 2025-01-24
Form: DRS/A
Chunk 377
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 initial recognition. The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. When, and only when, the Company changes its business model for managing financial assets it shall reclassify all affected financial assets. Financial assets at amortized cost Cash and restricted cash, accounts receivable, other receivables, and other financial assets are measured at amortized cost. A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as measured at fair value through profit or loss:

| i. | the asset is held within a business model whose objective is to hold assets in order to collect contractual 
 cash flows; and                                                                                             |

| ii. | the contractual terms give rise on specified dates to cash flows that are solely payments of principal and 
 interest on the principal amount outstanding.                                                              |

Financial assets measured at amortized cost are subsequently measured using the effective interest method, and the amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gains or losses on derecognition of financial assets are also recognized in profit or loss.

| (2) | Impairment of financial assets |

The Company recognizes loss allowances for expected credit loss on financial assets measured at amortized cost, including accounts receivable. The loss allowance for accounts receivable is measured at an amount equal to lifetime expected credit losses. For financial assets at amortized cost and contract assets, when the credit risk on the financial instrument has not increased significantly since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from possible default events of a financial instrument within 12 months after the reporting date. If, on the other hand, there has been a significant increase in credit risk since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from all possible default events over the expected life of a financial instrument. When determining whether the credit risk of a financial instrument has increased significantly since initial recognition, the Company considers reasonable and supportable information that is relevant. This includes both qualitative and quantitative F-113

PayNow Inc. Notes to the Financial Statements (Continued) information and analysis, based on the Company’s historical experience and credit assessment, as well as forward-looking information. The impairment gain or loss recognized in profit or loss is the amount needed for adjusting the loss allowance account to its required level at the reporting date.

| (3) | Derec