Company: OSRH
Filing Date: 2025-01-29
Form Type: S-4/A
Source: 0001213900-25-007923
Chunk: 628

Company: OSR Holdings, Inc.
Filing Date: 2025-01-29
Form: S-4/A
Chunk 628
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, no re -judgmentis made as to whether the contract is or contains a lease on the date of initial application. •The exemption rule for not recognizing right -of-useassets and lease liabilities applies to leases with a lease period of 12 months or less, or leases of low -valueassets. •Excluding direct lease opening costs from the right -of-useasset measurement at the date of initial application. •If the contract includes options to extend or terminate the lease, use hindsight when determining the lease term. Right-of-use assets The Group recognizes right -of-useassets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right -of-useassets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right -of-useassets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date, less any lease incentives received. Right -of-useassets are depreciated on a straight -linebasis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

|              |     | Estimated    
 useful       
 lives        |
| Right-of-use |     | 1~3.75 years |

Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized right -of-useassets are depreciated on a straight -linebasis over the shorter of its estimated useful life and the lease term. Right -of-useassets are subject to impairment.

F-65

2. Significant accounting policies (cont.) Lease liabilities At the commencement date of the lease, the Group recognizes lease liabilities at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in -substancefixed payments), less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate