Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 175

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 175
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 Period-average AED: US$1 exchange rate                             3.6729      -           -       

Business Combination

The Company accounts for
its business combinations using the acquisition method of accounting in accordance with ASC 805 “ Business Combinations.” The
cost of an acquisition is measured as the aggregate of the acquisition date fair value of the assets transferred to the sellers and liabilities
incurred by the Company and equity instruments issued. Transaction costs directly attributable to the acquisition are expensed as incurred.
Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective
of the extent of any non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling
interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the
identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets
of the subsidiaries acquired, the difference is recognized directly in the consolidated statements of operation and comprehensive income
(loss). During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the
assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final
determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded
to the consolidated statements of operation and comprehensive income (loss).

Non-controlling interests

For the Company’s non-wholly
owned subsidiaries, a non-controlling interest is recognized to reflect portion of equity that is not attributable, directly or indirectly,
to the Company. The cumulative results of operations attributable to non-controlling interests are also recorded as non-controlling interests
in the Company’s consolidated balance sheets and consolidated statements of operation and comprehensive income (loss). Cash flows
related to transactions with non-controlling interests are presented under financing activities in the consolidated statements of cash
flows.

Segment reporting

The chief executive officer
is identified as the Company’s chief operating decision-maker who reviews financial information presented on a consolidated basis,
accompanied by disaggregated information about revenues by different revenues streams for purposes of allocating resources and evaluating
financial performance. Based on qualitative and quantitative criteria established by Accounting Standards Codification (“ ASC”)
280, “ Segment Reporting”, the Company considers itself to be operating withinfouroperating andthreereportable segments
as set forth in