Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 239

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 239
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 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 fiscal years, Early adoption is permitted for both interim and annual financial statements
that have not yet been issued(or made available for issuance). if an entity adopts the amendments in an interim period. it must adopt
them as of the beginning of the fiscal year that includes that interim period.

The amendments in this Update require a cumulative-effect
adjustment to the opening balance of retained earnings (or other appropriate components of equity or net assets) as of the beginning of
the annual reporting period in which an entity adopts the amendments.

F-47

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

In November 2021, the FASB issued ASU 2021-10,
Government Assistance (Topic 832) - Disclosures by Business Entities about Government Assistance (“ ASU 2021-10”). It
requires issuers to make annual disclosures about government assistance, including the nature of the transaction, the related accounting
policy, the financial statement line items affected and the amounts applicable to each financial statement line item, as well as any significant
terms and conditions, including commitments and contingencies. The amendments in ASU 2021-10 are effective for all entities for fiscal
years, and interim periods within those fiscal years, beginning after December 15, 2021. The Company adopted the standard for the year
ended December 31, 2022 and the adoption of this standard does not have a material impact on its consolidated financial statements.

In August 2020, the Financial Accounting Standards
Board (“ FASB”) issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and
Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) (“ ASU 2020-06”), which eliminates two of the three
models in ASC 470-20 that require separate accounting for embedded conversion features and eliminates some of the conditions for equity
classification in ASC 815-40 for contracts in an entity’s own equity. The guidance also requires entities to use the if-converted
method for all convertible instruments in the diluted earnings per share calculation and generally requires them to include the effect
of share settlement for instruments that may be settled in cash or shares. The Company adopted this standard on January 1, 202