Company: SDAWW
Filing Date: 2025-12-22
Form Type: 6-K
Source: 0001213900-25-124170
Chunk: 10

Company: SunCar Technology Group Inc.
Filing Date: 2025-12-22
Form: 6-K
Chunk 10
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2025, the FASB issued Accounting Standards Update No. 2025-01,
Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date
(“ASU 2025-01”). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as
well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03,
as clarified by ASU 2025-01, is effective for us for our annual reporting for fiscal 2028 and for interim period reporting beginning in
fiscal 2029 on a prospective basis. Both early adoption and retrospective application are permitted. The Group is currently evaluating
the impact that the adoption of these standards will have on its consolidated financial statements and disclosures.

In November 2024, the FASB issued ASU 2024-04,
Debt–Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversion of Convertible Debt Instruments (“ASU 2024–04”),
which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as
an induced conversion. ASU 2024-04 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting
periods within those annual reporting periods. Early adoption is permitted for all entities that have adopted the amendments in Update
2020-06. The Group is in the process of evaluation the impact of adopting this new guidance on its consolidated financial statement.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit
Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). The amendments
in ASU 2025-05 provide entities with a practical expedient to simplify the estimation of expected credit losses on current accounts receivable
and current contract assets that arise from transactions accounted for under ASC 606, Revenue from Contracts with Customers (“ASC
606”) by allowing the assumption that current conditions as of the balance sheet date will not change during the remaining life
of the asset. ASU 2025-05 is effective for the Group for its annual reporting periods beginning after December 15, 2025, and interim reporting
periods within those annual reporting periods, with early adoption permitted