Company: OSRH
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045947
Chunk: 287

Company: OSR Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 287
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Group considers all highly liquid financial instruments with original maturities of three months or less when purchased to be cash equivalents.

6

e.Allowance for credit losses

The
Group records an allowance for credit losses (ACL) under Subtopic 326-20 Financial Instruments - Credit Losses – Measured at
Amortized Cost for the current expected credit losses inherent in its financial assets measured at amortized cost and contract assets.
The ACL is a valuation account deducted from the amortized cost basis to present the net amount expected to be collected. The estimate
of expected credit losses includes expected recoveries of amounts previously written off as well as amounts expected to be written off.

Accounts receivable

The
Group uses an aging schedule to estimate the ACL for trade accounts receivable. This method categorizes trade receivables into different
groups based on industry and the number of days past due. Past due status is measured based on the number of days since the payment due
date. The trade receivables are evaluated individually for expected credit losses if they no longer share similar risk characteristics.
The Group determines that the receivables no longer share similar risk characteristic if they are past due balances over 90 days
and over a specified amount. The Group evaluates the collectability of trade accounts receivables with payments that are more than 90
days past due on an individual basis to determine if any are deemed uncollectible. Trade accounts receivable balances are deemed uncollectible
and written off as a deduction from the allowance after all means of collection have been exhausted.

f.Accounts receivable

Accounts
receivables are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included
in cash flows from operating activities in the condensed consolidated statements of cash flows.

g.Inventories

Inventories
are stated at the lower of cost or net realizable value and cost is determined by the first-in, first-out method. Cost comprises of direct
materials and delivery costs, direct labor, import duties and other taxes, an appropriate proportion of variable and fixed overhead expenditure
based on normal operating capacity, and, where applicable, transfers from cash flow hedging reserves in equity. Costs of purchased inventory
are determined after deducting rebates and discounts received or receivable.

Stock
in transit is stated at the lower of cost and net realizable value. Cost comprises of purchase and delivery costs, net of rebates and
discounts received or receivable.

Net