Company: DTCK
Filing Date: 2025-12-23
Form Type: 6-K
Source: 0001683168-25-009327
Chunk: 12

Company: DAVIS COMMODITIES Ltd
Filing Date: 2025-12-23
Form: 6-K
Chunk 12
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 of the
assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. Estimated
useful lives are as follows:

| Schedule of estimated useful lives                                             |     |                        |
| Category                                                                       |     | Estimated useful lives |
| Investment property                                                            |     | 40 years               |
| Right-of-use asset                                                             |     | 3 years                |
| Furniture and fittings, office equipment, renovation and computer and software |     | 3 years                |
| Motor vehicle                                                                  |     | 10 years               |

Expenditures for repair and maintenance costs,
which do not materially extend the useful lives of the assets, are charged to expenses as incurred, whereas the expenditures for major
renewals and betterments that substantially extend the useful lives of property and equipment are capitalized as additions to the related
assets. Retirements, sales and disposals of assets are recorded by removing the costs, accumulated depreciation and impairment with any
resulting gain or loss recognized in the unaudited interim condensed consolidated statements of income.

| F-11 |

(l) Impairment of long-lived assets

The Company reviews its long-lived assets for
impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When
these events occur, the Company measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted
future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted
cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss, which is the excess of the carrying
amount over the fair value of the assets, using the expected future discounted cash flows. No impairment of long-lived assets was recognized
as of June 30, 2025 and December 31, 2024.

(m) Commitments and contingencies

In the normal course of business, the Company
is subject to commitments and contingencies, including operating lease commitments, legal proceedings and claims arising out of its business
that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such
contingency if it determines it is probable that a loss will occur, and a reasonable estimate of the loss can be made. The Company may
consider many factors in making these assessments on liability for contingencies, including historical and the specific facts and circumstances
of each