Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 14

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 Standards Board
(“FASB”) issued Accounting Standards Update (“ASU”) 2025-05, Measurement of Credit Losses for Accounts Receivable
and Contract Assets. ASU 2025-05 amends ASC 326, Financial Instruments—Credit Losses, and introduces a practical expedient available
for all entities and an accounting policy election available for all entities, other than public business entities, that elect the practical
expedient. These changes apply to the estimation of expected credit losses for current accounts receivable and current contract assets
arising from transactions accounted for under ASC 606, Revenue from contracts with customers. Under the practical expedient, entities
may assume that current conditions as of the balance sheet date remain unchanged for the remaining life of the asset when developing reasonable
and supportable forecasts. This simplifies the estimation process for short-term financial assets. ASU 2025-05 is effective for the Company’s
annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with
early adoption permitted. ASU 2025-05 should be applied on a prospective basis. The Company is currently evaluating the adoption of this
guidance whether or not a material impact on the Company’s condensed consolidated financial statements.

The Company has considered all other recently issued
accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its condensed consolidated
financial statements.

    3.
    INVENTORIES

    Schedule of inventories 

    September 30, 2025  
    December 31, 2024 
  
    Ornament and adornment products 
    $1,362,986  
    $1,303,273 

No impairment provision for obsolete inventories was
recorded for the three and nine months ended September 30, 2025 and 2024.

    4.
    MOTOR VEHICLE

    Schedule of motor vehicle 

    September 30, 2025  
    December 31, 2024 
  
    Motor vehicle 
    $142,163  
    $138,682 
  
    Less: Accumulated depreciation 
     (65,276) 
     (43,916)
  
    Net book value 
    $76,887  
    $94,766 

Depreciation expense recorded for this motor vehicle
for the three and nine months ended September 30, 2025