Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 30

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 certain topical areas.
ASU 2024-02 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company
is currently evaluating the adoption of this guidance whether or not a material impact on the Company’s condensed consolidated
financial statements.

In November 2024, the FASB issued ASU No. 2024-03,
Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement
Expenses (“ASU 2024-03”), and in January 2025, the FASB issued ASU No. 2025-01, Income Statement - Reporting Comprehensive
Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (“ASU 2025-01”). ASU 2024-03 requires
additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses
included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for annual
reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15,
2027. Both early adoption and retrospective application are permitted. The Group is currently evaluating the adoption of this guidance
whether or not a material impact on the Company’s condensed consolidated financial statements.

In July 2025, the Financial Accounting Standards Board
(“FASB”) issued Accounting Standards Update (“ASU”) 2025-05, Measurement of Credit Losses for Accounts Receivable
and Contract Assets. ASU 2025-05 amends ASC 326, Financial Instruments—Credit Losses, and introduces a practical expedient available
for all entities and an accounting policy election available for all entities, other than public business entities, that elect the practical
expedient. These changes apply to the estimation of expected credit losses for current accounts receivable and current contract assets
arising from transactions accounted for under ASC 606, Revenue from contracts with customers. Under the practical expedient, entities
may assume that current conditions as of the balance sheet date remain unchanged for the remaining life of the asset when developing reasonable
and supportable forecasts. This simplifies the estimation process for short-term financial assets. ASU 2025-05 is effective for the Company’s
annual