Company: OSRH
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045947
Chunk: 10

Company: OSR Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 direct
materials and delivery costs, direct labor, import duties and other taxes, an appropriate proportion of variable and fixed overhead expenditure
based on normal operating capacity, and, where applicable, transfers from cash flow hedging reserves in equity. Costs of purchased inventory
are determined after deducting rebates and discounts received or receivable.

Stock
in transit is stated at the lower of cost and net realizable value. Cost comprises of purchase and delivery costs, net of rebates and
discounts received or receivable.

Net
realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated
costs necessary to make the sale.

h.Equipment and vehicles

Equipment
and vehicles are stated at historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.

Depreciation
of all equipment and vehicles is calculated using the straight-line method to allocate their cost or revalued amounts, net of their residual
values, over their estimated useful lives as follows:

    Estimated 
useful lives
  
    Vehicle 
    5 years
  
    Office equipment 
    5 years
  
    Facility equipment 
    3 to 13 years

The
assets’ depreciation method, residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period.

7

i.Goodwill and intangible assets

Goodwill
represents the excess purchase price over the estimated fair value of net assets acquired in a business combination.

The
Group accounts for intangible assets in accordance with Accounting Standards Codification (ASC) Topic 350, Intangibles – Goodwill
and Other (ASC 350). ASC 350 requires that intangible assets with estimable useful lives be amortized over their respective estimated
useful lives and reviewed for impairment in accordance with accounting standards.

When
impairment indicators are identified, the Group compares the reporting unit’s fair value to its carrying amount, including goodwill.
An impairment loss is recognized as the difference, if any, between the reporting unit’s carrying amount and its fair value, to
the extent the difference does not exceed the total amount of goodwill allocated to the reporting unit.

Indefinite-lived
intangible assets are tested for impairment annually, and more frequently when there is a triggering event. Annually, or when there is
a triggering event, the Group first performs a qualitative assessment by evaluating all relevant events and circumstances to determine