Company: JL
Filing Date: 2025-04-03
Form Type: 20-F/A
Source: 0001213900-25-028675
Chunk: 190

Company: J-Long Group Ltd
Filing Date: 2025-04-03
Form: 20-F/A
Chunk 190
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 of the guarantee would be disclosed.

Revenue recognition

The Company complies with ASC
Topic 606, “Revenue from Contracts with Customers” (“ASC Topic 606”) for revenue recognition. Based on the requirements
of ASC Topic 606, revenue is recognized when control of the promised goods or services is transferred to the customers in an amount
that reflects the consideration the Company expects to be entitled to receive in exchange for those goods or services. The Company offer
a wide range of apparel solution services to cater to the customers’ needs for reflective and non-reflective garment trims, ranging
from market trend analysis, product design and development and production to quality control. Revenue is recognized when the following
5-step revenue recognition criteria are met:

| 1) | Identify the contract with a customer |

| 2) | Identify the performance obligations in the contract |

| 3) | Determine the transaction price |

| 4) | Allocate the transaction price |

| 5) | Recognize revenue when or as the entity satisfies a performance 
 obligation                                                      |

F - 15 J-LONG GROUP LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2024, 2023 AND 2022 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.) Revenue from product sales is recognized at the point in time control of the products is transferred, generally upon customer receipt based upon the standard contract terms. Shipping and handling activities are considered to be fulfillment activities rather than promised services and are not, therefore, considered to be separate performance obligations. Contract shipping terms include ExWorks (“EXW”), FOB (Free on Board), CNF/CFR (cost & freight), CIF (cost, insurance and freight) and DAP (delivered at place) price term. Under EXW (meaning the seller fulfills its obligation to deliver when it makes goods available at its premises for the buyer to collect), the performance obligation is satisfied and control is transferred at the point when the customer loading the goods onto a transport vehicle at the seller’s premises. Under “FOB”, the control is transferred to the customer at the time the goods are loaded at the port of export. Under CNF/CFR, the control are transferred to the buyer when the goods are handed over to the port of destination for the customer. Under CIF, the control are transferred to the buyer at the time the goods reach the destination port. Under DAP, the control are