Company: CHOW
Filing Date: 2025-04-01
Form Type: F-1
Source: 0001641172-25-001938
Chunk: 254

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-04-01
Form: F-1
Chunk 254
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 using a cumulative probability approach, at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. The estimated liability for unrecognized tax benefits is periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and or developments with respect to tax audits, and the expiration of the statute of limitations. Additionally, in future periods, changes in facts and circumstances, and new information may require the Company to adjust the recognition and measurement of estimates with regards to changes in individual tax position. Changes in recognition and measurement of estimates are recognized in the period in which the change occurs.

The Company did not accrue any liability, interest or penalties related to uncertain tax positions in its provision for income taxes line of its statements of operations and comprehensive income for the six months ended June 30, 2023 and 2024, respectively. The Company does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months.

(t) Comprehensive income

The Company has adopted FASB Accounting Standard Codification Topic 220 (“ASC 220”) “Comprehensive income”, which establishes standards for reporting and the presentation of comprehensive income (loss), its components and accumulated balances.

There was no other comprehensive loss for the six months ended June 30, 2023 and 2024, respectively.

| F-57 |

(u) Leases

The Company accounts for leases under ASC
Topic 842, Leases. At the inception of a contract, the Company determines whether the arrangement contains a lease by evaluating whether
the Company obtains the right to control the use of an identified asset for a period in exchange for consideration.

Right-of-use assets and lease liabilities
are recognized at the commencement date of the lease. Lease liabilities are initially measured at the present value of the unpaid lease
payments, discounted using the interest rate implicit in the lease, if readily determinable. If the implicit rate is not available, the
Company uses its incremental borrowing rate, which is determined based on the rate of interest that the Company would have to pay to
borrow on a collateralized basis over a similar term for an amount equal to the lease payments in a similar economic environment.

The right-of-use asset is initially measured
at cost, which includes the amount of the initial lease liability, adjusted for any lease incentives received, initial direct costs incurred,
and lease payments made prior to commencement. Right-of-use assets are recognized in the Company’s consolidated balance sheet within
“right-of-use assets,”