Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 196

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 196
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 less. Its leases generally do not provide a residual guarantee.

The finance or operating
lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term for operating
lease. Meanwhile, the Company recognizes the finance leases ROU assets and interest on an amortized cost basis. The amortization of finance
ROU assets is recognized on straight-line basis as amortization expense, while the lease liability is increased to reflect interest on
the liability and decreased to reflect the lease payments made during the period. Interest expense on the lease liability is determined
each period during the lease term.

The Company reviews the impairment
of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its
long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable.
The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted
future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of operating lease liabilities
in any tested asset group and include the associated operating lease payments in the undiscounted future pre-tax cash flows. For the years
ended March 31, 2025, 2024, and 2023, the Company did not recognize impairment loss on its finance and operating lease ROU assets.

F-24

GCL GLOBAL HOLDINGS LTD
AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Related parties

The Company identifies related
parties, accounts for and discloses related party transactions in accordance with ASC 850, “ Related Party Disclosures” and
other relevant ASC standards.

Corporations or individual
parties are considered to be related if they have the ability, directly or indirectly, to control the Company or exercise significant
influence over the Company in making financial and operating decisions. Entities are also considered to be related if they are subject
to common control or common significant influence.

Transactions involving related
parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings
may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were
consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated.

Commitments and contingencies

The