Company: NIVFW
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001213900-25-033966
Chunk: 92

Company: NewGenIvf Group Ltd
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 92
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125% was the most indicative rate of NewGenIvf’s borrowing cost for the
calculation of the present value of the lease payments; the rate used by NewGenIvf was 6.6% and 5.5% respectively.

As of December 31, 2023,
there were $283,847 ROU assets and $326,107 in lease liabilities based on the present value of the future minimum rental payments of leases,
respectively. NewGenIvf’s management believes that using an incremental borrowing rate of the minimum loan rate and Hong Kong Dollar
Best Lending Rate (“ BLR”) minus 0.125% was the most indicative rate of NewGenIvf’s borrowing cost for
the calculation of the present value of the lease payments; the rate used by NewGenIvf was 6.6% and 5.5% respectively.

Financial instruments

NewGenIvf’s financial
instruments, including cash and cash equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and
amounts due from (to) shareholders, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820,
“ Fair Value Measurements and Disclosures” requires disclosing the fair value of financial instruments held by NewGenIvf. ASC
Topic 825, “ Financial Instruments” defines fair value and establishes a three-level valuation hierarchy for disclosures
of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated
balance sheets for cash and cash equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and amounts
due from (to) shareholders each qualify as financial instruments and are a reasonable estimate of their fair values because of the short
period between the origination of such instruments and their expected realization and their current market rate of interest. NewGenIvf
analyzes all financial instruments with features of both liabilities and equity under ASC 480, “ Distinguishing Liabilities
from Equity” and ASC 815. See “Note 2 - Summary of Significant Accounting Policies” for details.

Recent accounting pronouncements

The FASB has introduced expanded
income tax disclosure requirements under ASU 2023-09 to improve transparency. Companies will now need to provide a detailed reconciliation
of their effective tax rate, breaking down federal, state, and foreign taxes, as well as specific categories like tax credits and foreign
earnings. Additionally, businesses must disclose income taxes