Company: SPPL
Filing Date: 2025-04-08
Form Type: 20-F
Source: 0001641172-25-003217
Chunk: 126

Company: SIMPPLE LTD.
Filing Date: 2025-04-08
Form: 20-F
Item: Item 18
Chunk 126
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 the non-lease components
from the lease components to which they relate.

The
Company evaluates the impairment of its right-of-use assets consistent with the approach applied for its other long-lived assets. The
Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying
value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value
of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the
carrying amount of finance and operating lease liabilities in any tested asset group and include the associated lease payments in the
undiscounted future pre-tax cash flows. For the years ended December 31, 2023 and 2024, the Company did not have any impairment loss
against its operating lease right-of-use assets.

SIMPPLE
LTD. AND ITS SUBSIDIARIES

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

2
Summary of significant accounting policies (cont’d)

Fair
value measurements

ASC
820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required
or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which pricing the asset
or liability. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

  Level      -                                                                                                                 
  Level      -                                                                                                                 
  Level      -                                                                                                                 

The
carrying amounts of cash and cash equivalents, account receivables, account payables, other payables to related parties, and accruals
and other payables approximate their fair values because of their generally short maturities.

Revenue
recognition

The
Company applied ASC Topic 606 “ Revenue from Contracts with Customers” (“ ASC 606”) for all periods presented.

The
five-step model defined by ASC 606 required the Company to (1) identify its contracts with customers, (2) identify its performance obligations
under those contracts, (3) determine the transaction prices of those contracts, (4) allocate the transaction prices to its performance
obligations in those contracts, and (5) recognize revenue when each performance obligation under those contracts is satisfied. Revenue
is recognized when