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

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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ation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive
income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable
on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable
with respect to previous periods.

     10 

The Company accounts for income taxes using the asset
and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial
reporting and tax basis of assets and liabilities, net of operating loss carry forwards and credits, by applying enacted tax rates that
will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates
is recognized in the statements of operations in the period of change.

The Company accounts for uncertain tax positions by
reporting liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return.
Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position
will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest
and penalties if any, related to unrecognized tax benefits in income tax expenses.

(l) Comprehensive Income or Loss

Comprehensive income or loss includes net income and
foreign currency translation adjustments. Comprehensive income or loss is reported in the statements of comprehensive income or loss.

(m) Concentration of Credit Risk

Financial instruments that potentially expose the
Company to a significant concentration of credit risk consist primarily of cash and cash equivalents and other receivables. As of September
30, 2025 and December 31, 2024, substantially all of the Company’s cash and cash equivalents were deposited with financial institutions
with high-credit ratings and quality. During the three and nine months ended September 30, 2025, revenue amounting to $2,689 and $56,697
was generated from third parties; and $49,509 and $159,331 was generated from a related party (Note 6), respectively. During the three
and nine months ended September 30, 2024, all revenue was generated from third parties.

Details of customer who accounted for 10% or more
of the Company’s total revenue for the three and nine months ended September 30, 2025 and