Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 131

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 131
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 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 finance and operating lease liabilities
in any tested asset group and include the associated lease payments in the undiscounted future pre-tax cash flows. For the years
ended December 31, 2023 and 2024, the Group did not have any impairment loss against its operating lease right-of-use assets.

Related parties

The Company adopted ASC Topic 850, Related
Party Disclosures, for the identification of related parties and disclosure of related party transactions.

Parties are considered to be related if one party
has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial
and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence of the
same party, such as a family member or relative, shareholder, or a related corporation.

The details of related party transaction
during the years ended December 31, 2022, 2023 and 2024 and balances as at December 31, 2023 and 2024 are set out in
the Note 15.

Revenue recognition

The Company recognizes revenue in accordance with
ASC Topic 606, Revenue from Contracts with Customers, and subsequently issued additional related Accounting Standards Updates (collectively,
“ ASC 606”). The Company derives revenue principally from the provision of customized software solutions based on customers’
specifications, white-labelled software design and development services and MR. CLOUD SaaS platform subscription services to SMBs
customers. The Company enters into agreements with customers that create enforceable rights and obligations and for which it is probable
that the Company will collect the consideration to which it will be entitled as services transfer to the customer. It is customary practice
for the Company to have written agreements with its customers and revenue on oral or implied arrangements is generally not recognized.
The Company recognizes revenue based on the consideration specified in the applicable agreement.

F-14

WELLCHANGE HOLDINGS COMPANY LIMITED

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
AND PRACTICES(cont.)

Revenue from contracts with customers is recognized
using the following five steps:

  identify the contract(s) with a customer;  

  identify the performance obligations in the contract;  

  determine the transaction price;  

  allocate the transaction price to the performance obligations  

  recognize revenue when (or as) the entity