Company: GINT
Filing Date: 2025-03-12
Form Type: DRS/A
Source: 0001213900-25-022887
Chunk: 237

Company: Gifts International Holdings Ltd
Filing Date: 2025-03-12
Form: DRS/A
Chunk 237
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, the Company determines whether any changes in its interest or relationship with the entity impact the determination of whether the entity is still a VIE and, if so, whether the Company is the primary beneficiary. Currently, MGGB is deemed as a VIE, in which Mr. Wong owns 100% in equity interest and commonly controls as a related party to the Company. MGGB is acting as an operating unit to collect the sales receipts on behalf of the Company. Hence, the Company consolidates MGGB’s financial statements, when it is the primary beneficiary under ASC 810. F-31 GIFTS INTERNATIONAL HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE COMBINED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.) For the years ended March 31, 2023 and 2024, MGGB contributed less than 1% of the Company’s total revenues, whose operation is considered not material. •Use of Estimates and Assumptions The preparation of combined financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the combined financial statements and the reported amounts of revenues and expenses during the years presented. Significant accounting estimates reflected in the Company’s combined financial statements include the useful lives of plant and equipment, impairment of long -livedassets, allowance for expected credit losses, provision for long service payments, revenue recognition, income tax provision, deferred taxes and uncertain tax position. The inputs into the management’s judgments and estimates consider the geopolitical tension, inflationary and high -interestrate environment and other macroeconomic factors on the Company’s critical and significant accounting estimates. Actual results could differ from these estimates. •Foreign Currency Transaction Transactions denominated in currencies other than the functional currency are recorded based on exchange rates at the time such transactions arise with the impact of subsequent changes in such rates reflected in the income statement. The functional currency of a significant portion of our international operations is Hong Kong Dollar (“HK$” or “HKD”). The Company uses Hong Kong Dollar (“HKD”) as its reporting currency. The functional currency of the Company and its subsidiary in British Virgin Islands is United States Dollar (“US$”), its subsidiary in Hong Kong is HKD and VIE in Macau is Macanese Pataca (“MOP”), which is its respective local currency based on the criteria of ASC Topic 830, Foreign Currency Matters. In