Company: OSRH
Filing Date: 2025-01-29
Form Type: S-4/A
Source: 0001213900-25-007923
Chunk: 471

Company: OSR Holdings, Inc.
Filing Date: 2025-01-29
Form: S-4/A
Chunk 471
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 or (b) OSR Holdings has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset When OSR Holdings has transferred its rights to receive cash flows from an asset or has entered into a pass -througharrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, OSR Holdings continues to recognize the transferred asset to the extent of its continuing involvement. In that case, OSR Holdings also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that OSR Holdings has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that OSR Holdings could be required to repay. Impairment OSR Holdings assesses, on a forward -lookingbasis, the expected credit losses associated with its debt instruments carried at amortized cost and fair value through OCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk. However, for trade receivables and lease receivables, OSR Holdings applies the simplified method of recognizing expected credit losses over the entire period from the initial recognition of the receivables. 297

OSR Holdings evaluates whether credit risk in financial assets or financial assets significantly increases at the end of each reporting period and recognizes 12 -monthexpected credit losses or lifetime expected losses as loss allowance in three stages as follows:

| Stage                                                                  |     | Loss provision                                                                                                                                                                         |
| 1.    No significant increase in credit risk after initial recognition |     | 12-month expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date) |
| 2.    Significant increase in credit risk after initial recognition    |     | Lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument)                                        |
| 3.    Credit-impaired                                                  |     |                                                                                                                                                                                        |

Significant financial difficulties of the debtor, delinquency in interest or principal payments for more than 3 months, or the disappearance of an active market for that financial asset because of financial difficulties are considered evidence of impairment. Financial Liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition