Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 177

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 177
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 to income taxes on the income tax expense line in the accompanying consolidated statement of operations. Accrued
interest and penalties will be included on the related tax liability line in the consolidated balance sheet.

The Group does not expect that its assessment
regarding unrecognized tax benefits will materially change over the next 12 months.

F-15

FST Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In U. S. dollars, except for share and per
share data, or otherwise noted)

2. SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

(t) Employee
benefits

  (a)      Short-term employee benefits  

Short-term employee benefits are measured at the
undiscounted amount of the benefits expected to be paid in respect of service rendered by employees and should be recognized as expenses
when the employees render service.

  (b)      Pensions  

  Defined contribution plans  

For defined contribution plans, the contributions
are recognized as pension expenses when they are due on an accrual basis. Prepaid contributions are recognized as an asset to the extent
of a cash refund or a reduction in future payments.

  ii)      Defined benefit plans  

  Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits                                  

  Remeasurements arising on defined benefit plans are recognized in other comprehensive income in the period  

  Past service costs are recognized immediately in profit or loss.  

(u) Government grants

Government subsidies are recognized as other income
when received and all the conditions for their receipt have been met. The government subsidies were paid by cash and have no defined rules
and regulations to govern the criteria necessary for the Group to enjoy the benefits.

Government grants related to property, plant and
equipment are recognized as liabilities and are amortized to profit or loss over the estimated useful lives of the related assets using
straight-line method. Government grants are recognized at their fair value only when there is reasonable assurance that the Group will
comply with any conditions attached to the grants will be received. Government grants are recognized in profit or loss on a systematic
basis over the periods in which the Group recognizes expenses for the related costs for which the grants are intended to compensate.

F-16

FST Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In U. S. dollars, except for share and per
share data, or otherwise noted)

2. SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

(v