Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 95

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 4A
Chunk 95
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. e., customer has a right of return) the specified good has been
transferred to a customer, (3) we have discretion in setting the price for the specified good.

In determining the transaction price, we evaluate
whether the price is subject to refund or adjustment to determine the net consideration to which we expect to be entitled. We provide
our customers with the right to return the sold goods for several days after the customers’ acceptance of the goods and can reasonably
estimate the return provision for the goods. The product return provisions are estimated based on (1) historical rates, (2) specific identification
of outstanding returns not yet received from customers and outstanding discounts and claims, and (3) estimated returns, discounts, and
claims expected, but not yet finalized with customers. We analyzed historical refund claims for defective products and concluded that
they have been immaterial since we can return the goods returned by the customers to our suppliers.

Revenues are reported net of all VAT. As our standard
payment terms are less than one year, we have elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract
has a significant financing component. We allocate the transaction price to each distinct product based on its relative standalone selling
price.

Revenue is recognized when control of the product
is transferred to the customer (i. e., when our performance obligation is satisfied at a point in time), which typically occurs at delivery.
Prices are determined based on negotiations with our customers when signing the contracts and are not subject to adjustment.

Recent Accounting Pronouncements

We consider the applicability and impact of all
ASUs. Management periodically reviews new accounting standards that are issued.

In July 2024, the FASB issued ASU 2024-03, Income
Statement - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires
public business entities to provide more detailed disaggregation of certain expense line items presented in the income statement, including
the amounts related to employee compensation, depreciation, amortization, and inventory and manufacturing expense, among others. The objective
of this update is to enhance the transparency and decision-usefulness of expense information provided to investors. The amendments are
effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.
Early adoption is permitted. We are currently evaluating the impact of the adoption of this ASU on