Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 117

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 5
Chunk 117
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 its fair value. In determining the fair value of the PFI investment, we made estimates
and judgments in determining the fair value regarding the cash flow forecasts of PFI, the weighted average cost of capital and the discount
for lack of marketability applied to the projected cash flows. As we do not have significant influence over PFI, we elected to measure
investment in PFI, without a readily determinable fair value, subsequently at cost adjusted for changes resulting from impairments, if
any, and observable price changes in orderly transactions for the identical or similar securities of the same issuer.

Recent Accounting Pronouncements

Recently Adopted Accounting Standards

In February 2016, the
FASB issued Accounting Standards Codification Topic 842, Leases (ASC 842). ASC 842 specifies the accounting for leases. For operating
leases, ASC 842 requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of
the lease payments, in its balance sheets. The standard also requires a lessee to recognize a single lease cost, calculated so that the
cost of the lease is allocated over the lease term, on a generally straight-line basis. ASC 842 was further amended in June 2020
by ASU 2020-05. Revenue from Contracts with Customers (ASC 606) and Leases (ASC 842), ASU 2020-05 deferred the effective
date of new leases standard. As a result, ASC 842, Leases, is effective for public companies for annual reporting periods, and interim
periods within those years beginning after December 15, 2018. For all other entities, it is effective for fiscal years
beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption
is permitted. As the Company is an “emerging growth company” and elects to apply for the new and revised accounting standards
at the effective date for a private company, the Company adopted ASC 842 for the fiscal year ended December 31, 2022.

In December 2023, the
FASB issued ASU 2023-08,“ Intangibles， Goodwill and Other-Crypto Assets (Subtopic 350-60). Accounting for and Disclosure
of Crypto Assets” The amendments in this Update are effective for all entities for fiscal years beginning after December
15,2024, including interim periods within those