Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 129

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 129
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 markets, and inputs that are observable for the assets or liabilities, either dire...  
  Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.                                                                                                       

Unless otherwise disclosed, the fair value of
Company’s financial instruments including cash and cash equivalents, accounts receivable, rental deposit, amounts due from a director,
amounts due to related parties, bank borrowings, other payables and lease liabilities approximate their recorded values due to their short-term
maturities.

Accruals and other payables

Accruals and other payables primarily include
accrued staff costs, accrued professional fee, payables for rental of server for the software data storage and other accrual and payable
for the operation of the ordinary course of business.

Contract liabilities

Contract liabilities are recorded when consideration
is received from a customer prior to transferring the services to the customer or other conditions under the terms of a service contract.
These payments are non-refundable and are recognized as revenue when our performance obligation is satisfied. As of December 31,
2023 and 2024, the Company recorded contract liabilities of US$45,920and US$315,411, respectively, which was presented as contract liabilities
on the accompanying consolidated balance sheets.

Bank borrowings

Borrowings are initially recognized at fair value,
net of upfront fees incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction
costs) and the redemption amount is recognized in statements of income over the period of the borrowings using the effective interest
method. All bank borrowings were classified as short term due to repayment on demand clauses attached in the borrowings.

Lease

ASC 842 supersedes the lease requirements
in ASC 840 “ Leases”, and generally requires lessees to recognize operating and finance lease liabilities and corresponding
right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows
arising from leasing arrangements. All leases in the Group are accounted for as operating leases.

We determine if an arrangement is a lease at inception.
On our balance sheet, our corporate office lease is included in operating lease right-of-use (ROU) assets, current portion of operating
lease liability and operating lease liability, net of current portion.

F-13

WELLCHANGE HOLDINGS COMPANY LIMITED

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
AND PRACTICES(cont.)

ROU assets