Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 234

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 234
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AP. Effective
for public business entities for annual periods beginning after December 15, 2024, and interim periods within those annual periods. Early
adoption is permitted. The Group does not expect the updated guidance to have a material impact on its consolidated financial statements
and disclosures.

In March 2024, the FASB updated 2024-02 focuses
on removing references to the Concepts Statements within the FASB Accounting Standards Codification. This update improves the clarity
and relevance of the Codification by eliminating unnecessary references to the Concepts Statements. The update removes references to various
Concepts Statements that are extraneous and not required to understand or apply the guidance. In some instances, these references were
used in prior Statements to provide guidance in certain topical areas. This update applies to all entities that issue financial statements
in accordance with US GAAP. Effective for public business entities for fiscal years beginning after December 15, 2024, including interim
periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15,
2025, including interim periods within those fiscal years. Early application is permitted. The Group does not expect the updated guidance
to have a material impact on its consolidated financial statements and disclosures.

In November 2024, the FASB updated 2024-03 focuses
on the disaggregation of income statement expenses to provide more detailed and transparent financial reporting. This update enhances
the relevance and usefulness of financial information by requiring entities to disaggregate specific income statement expenses. Entities
must disclose the nature and amount of significant expense categories, such as employee compensation, depreciation, and amortization,
separately in the income statement or in the notes to the financial statements. This update applies to all entities that issue financial
statements in accordance with US GAAP. Effective for annual reporting periods beginning after December 15, 2026, and interim reporting
periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Group is evaluating the impact
the updated guidance will have on its consolidated financial statements and disclosure.

F-46

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

In November 2024, the FASB updated 2024-04 addresses
the accounting for induced conversions of convertible debt instruments. This update improves the relevance and consistency in the application
of the induced conversion guidance in Subtopic 470-20. Clarifies the requirements for determining whether