Company: AGCC
Filing Date: 2025-03-31
Form Type: DRS
Source: 0001213900-25-026121
Chunk: 172

Company: Agencia Comercial Spirits Ltd.
Filing Date: 2025-03-31
Form: DRS
Chunk 172
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ICIES Basis of presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Use of estimates and assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company’s management reviews these estimates based on information that is currently available. Changes in facts and circumstances may cause the Company to revise its estimates. Significant accounting estimates reflected in the Company’s financial statements mainly include provision for expected credit losses on account receivables and other receivables, revenue recognition, and uncertain tax position. Functional currency and foreign currency translation The Company uses United States dollar (“US$”) as its reporting currency. The functional currency of the Company is New Taiwan Dollars (“NTD”). Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured into the functional currency at the prevailing rates of exchange at the balance sheet date. Non -monetaryassets and liabilities are remeasured into the functional currency at historical rates. Transactions denominated in other currencies are remeasured into the functional currency at the exchange rates prevailing on the transaction dates. Translation gains and losses are recognized as foreign exchange gain or loss, net in the statement of operations and comprehensive income. Assets and liabilities of the Company are translated into US$ at financial year -endexchange rates. Equity accounts other than earnings generated in current period are translated into US$ at the appropriate historical rates. Income and expense items are translated at average exchange rates during the financial year. Translation adjustments arising from these are reported as accumulated other comprehensive income/(loss) in the statements of changes in shareholders’ equity. The corresponding exchange rates used to translate NTD to US$ are as follows:

|                     |     |   2023 |     |   2024 |
| Year-end spot rate  |     | 0.0326 |     | 0.0305 |
| Annual average rate |     | 0.0321 |     | 0.0312 |

Related parties The Company adopted Accounting Standards Codification (“ASC”) 850, Relate Party Disclosures, for the identification of related parties and disclosure of related party transactions.

F-7

AGENCIA COMERCIAL CO., LTD NOTES TO THE FIN