Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 60

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 60
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 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 reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with
early adoption permitted. ASU 2025-05 should be applied on a prospective basis. The Company is currently evaluating the adoption of this
guidance whether or not a material impact on the Company’s condensed consolidated financial statements.

The Company has considered all other recently issued
accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its condensed consolidated
financial statements.

ITEM 3. QUANTITATIVE AND
QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not applicable.

 24 

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure
Controls and Procedures

Our management is responsible
for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e)) under the Exchange Act)
that is designed to ensure that information required to be disclosed by the Company in the reports that we file or submit under the Exchange
Act is recorded, processed, summarized and reported, within the time specified in the Commission’s rules and forms. Disclosure controls
and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an
issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management,
including its principal executive officer or officers and principal financial officer or