Company: VPLM
Filing Date: 2025-12-23
Form Type: 10-K
Source: 0001493152-25-029094
Chunk: 218

Company: Voip-pal.com Inc
Filing Date: 2025-12-23
Form: 10-K
Item: Item 3
Chunk 218
---
 occurrence
of an event which may indicate that the useful life may have changed.

Fair
Value of Financial Instruments

FASB
ASC 820, Fair Value Measurement, defines fair value as the price that would be received upon sale of an asset or paid upon transfer of
a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market
for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the
asset or liability, not on assumptions specific to the entity.

The
Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables
or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value on
their initial recognition, except for those arising from certain related party transactions which are accounted for at the transferor’s
carrying amount or exchange amount.

Financial
assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income. Financial
assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified as held-for-trading
are measured at amortized cost, using the effective interest method of amortization. Financial assets classified as available-for-sale
are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income until realized, or if an
unrealized loss is considered other than temporary, the unrealized loss is recorded in income.

U.S.
GAAP establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair
value measurements. Fair value is defined as the amount that would be received for an asset or paid to transfer a liability (i.e., an
exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants
on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of
unobservable inputs. The standard describes the following fair value hierarchy based on three levels of inputs, of which the first two
are considered observable and the last unobservable, that may be used to measure fair value:

    -
    Level
    1: Quoted prices in active markets for identical assets and liabilities.

    23

VOIP-PAL.COM
INC.

Notes
to the Consolidated Financial Statements

(Expressed
in United States Dollars)