Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 303

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 303
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 clarifies certain topics included within ASU 2016-13. ASU 2016-13 and ASU 2018-19 are effective
for the annual reporting period beginning after December 15, 2019, including interim periods within that reporting period. On January
1, 2023, the Company started using the CECL model. The Company’s accounts receivable and other receivables are within the scope
of ASC Topic 326. The Company has identified the relevant risk characteristics of its customers and the related accounts receivable and
other payables based on their credit rating. Receivables with similar risk characteristics have been grouped into pools. For each pool,
the Company considers the historical credit loss experience, current economic conditions, supportable forecasts of future economic conditions,
and any recoveries in assessing the lifetime expected credit losses. Other key factors that influence the expected credit loss analysis
include payment terms offered in the normal course of business to customers and industry-specific factors that could impact the Company’s
receivables. Additionally, macroeconomic factors are also considered. The Company also performs case-by-case analysis on specific customers
and makes specific allowance for credit loss accordingly. This is assessed each year based on the Company’s specific facts and circumstances.
For the fiscal years ended September 30, 2024 and 2023, the Company recorded expected credit loss of $62,731 and $157,656, respectively.

In August 2018, the FASB issued ASU No. 2018-13,
“Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value
Measurement.” The amendments in this ASU eliminate, add and modify certain disclosure requirements for fair value measurements.
The amendments in this ASU, among other things, require public companies to disclose the range and weighted average used to develop significant
unobservable inputs for Level 3 fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and
interim periods within those fiscal years, beginning after December 15, 2019, and entities are permitted to early adopt either the entire
standard or only the provisions that eliminate or modify the requirements. The Company has adopted these amendments since the fiscal year
ended September 30, 2022. The adoption of these amendments does not have a material impact on the Company’s consolidated financial
position, results of operations and cash flow.

Other accounting pronouncements that have been
issued or proposed by the FAS