Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 152

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 152
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 in the statements
of operations as foreign currency transaction gain or loss. The consolidated financial statements of the Company have been translated
into U. S. dollars in accordance with ASC 830, “ Foreign Currency Matters”. The financial information is first prepared in RMB
and then is translated into U. S. dollars at period-end exchange rates for assets and liabilities and average exchange rates for revenue
and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The effects of
foreign currency translation adjustments are included as a component of accumulated other comprehensive income in stockholders’
equity. Cash flows from the Company’s operations are calculated based upon the local currencies using the average translation rate.
As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes
in the corresponding balances on the balance sheets.

The exchange rates in effect as of December 31,
2024 and 2023 were RMB1.00for US$0.1391and US$0.1412, respectively. The average exchange rates for the years ended December 31, 2024,
2023 and 2022 were RMB1.00for US$0.1404, US$0.1419and US$0.1489, respectively.

F-17

Recent accounting pronouncements

In September 2023, the FASB issued ASU 2023-09,
Improvements to Income Tax Disclosures. The Board is issuing the amendments in this Update to enhance the transparency and decision usefulness
of income tax disclosures. Investors currently rely on the rate reconciliation table and other disclosures, including total income taxes
paid, to evaluate income tax risks and opportunities. While investors find these disclosures helpful, they suggested possible enhancements
to better (1) understand an entity’s exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities,
(2) assess income tax information that affects cash flow forecasts and capital allocation decisions, and (3) identify potential opportunities
to increase future cash flows. The Board decided that the amendments should be effective for public business entities for annual periods
beginning after December 15, 2024.

In February 2024, the FASB issued ASU 2024-02,
“ Codification Improvements - Amendments to Remove References to the Concepts Statements”. The Board decided that the types
of issues that it will consider through this project are changes to clarify the Codification or correct unintended application of guidance