Company: AGCC
Filing Date: 2025-07-29
Form Type: F-1/A
Source: 0001213900-25-068743
Chunk: 204

Company: Agencia Comercial Spirits Ltd.
Filing Date: 2025-07-29
Form: F-1/A
Chunk 204
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’s combined financial statements mainly include provision for expected credit losses on account receivables and other receivables, revenue recognition, and uncertain tax position. Functional currency and foreign currency translation The Company uses United States dollar (“US$”) as its reporting currency. The functional currency of the Company is New Taiwan Dollars (“NTD”). Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured into the functional currency at the prevailing rates of exchange at the balance sheet date. Non -monetaryassets and liabilities are remeasured into the functional currency at historical rates. Transactions denominated in other currencies are remeasured into the functional currency at the exchange rates prevailing on the transaction dates. Translation gains and losses are recognized as foreign exchange gain or loss, net in the statement of operations and comprehensive income. Assets and liabilities of the Company are translated into US$ at financial year -endexchange rates. Equity accounts other than earnings generated in current period are translated into US$ at the appropriate historical rates. Income and expense items are translated at average exchange rates during the financial year. Translation adjustments arising from these are reported as accumulated other comprehensive income/(loss) in the statements of changes in shareholders’ equity. The corresponding exchange rates used to translate NTD to US$ are as follows:

|                     |     |   2023 |     |   2024 |
| Year-end spot rate  |     | 0.0326 |     | 0.0305 |
| Annual average rate |     | 0.0321 |     | 0.0312 |

Related parties The Company adopted Accounting Standards Codification (“ASC”) 850, Relate Party Disclosures, for the identification of related parties and disclosure of related party transactions. A related party is generally defined as (i) any person and/or their immediate family holding 10% or more of the Company’s securities, (ii) the Company’s management and/or their immediate family, (iii)someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can

F-8

AGENCIA COMERCIAL SPIRITS LTD NOTES TO THE COMBINED FINANCIAL STATEMENTS FOR THE FINANCIAL YEARS ENDED DECEMBER 31, 2023 AND 2024 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) significantly influence the financial and operational decisions of the Company. A transaction is considered to be a related party transaction when there