Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 115

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 115
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 adoption permitted and can be applied
on either a prospective or retroactive basis. The Company is currently evaluating the impact that the adoption of this standard will have
on its consolidated financial statements and related disclosures.

In March 2024, the FASB updated
2024-01 addresses the scope application of profits interest and similar awards under Topic 718, Compensation - Stock Compensation.
This update improves the clarity and consistency in the application of the scope guidance for profits interest and similar awards. This
update adds an illustrative example to demonstrate how an entity should apply the scope guidance in paragraph 718-10-15-3 to determine
whether profits interest and similar awards should be accounted for in accordance with Topic 718. Profits interest awards are provided
to employees or nonemployees to align compensation with an entity’s operating performance and provide holders with the opportunity
to participate in future profits and/or equity appreciation. This update applies to all entities that issue financial statements in accordance
with US GAAP. Effective for public business entities for annual periods beginning after December 15, 2024, and interim periods within
those annual periods. Early adoption is permitted. The Group does not expect the updated guidance to have a material impact on its consolidated
financial statements and disclosures.

In November 2024, the FASB
updated 2024-03 focuses on the disaggregation of income statement expenses to provide more detailed and transparent financial reporting.
This update enhances the relevance and usefulness of financial information by requiring entities to disaggregate specific income statement
expenses. Entities must disclose the nature and amount of significant expense categories, such as employee compensation, depreciation,
and amortization, separately in the income statement or in the notes to the financial statements. This update applies to all entities
that issue financial statements in accordance with US GAAP. Effective for annual reporting periods beginning after December 15, 2026,
and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Group
is evaluating the impact the updated guidance will have on its consolidated financial statements and disclosure.

In November 2024, the FASB
updated 2024-04 addresses the accounting for induced conversions of convertible debt instruments. This update improves the relevance and
consistency in the application of the induced conversion guidance in Subtopic 470-20. Clarifies the requirements for determining whether
certain settlements of convertible debt instruments should be accounted for as an induced conversion. An inducement offer must provide
the