Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 227

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 19
Chunk 227
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2024, balance of allowance for expected credit loss was $50,935and $57,872, respectively.

Use of Estimates

The preparation of consolidated financial
statements in accordance with U. S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed
in the consolidated financial statements and accompanying notes. Actual amounts could differ from those estimates and differences could
be material. Changes in estimates are recorded in the period they are identified.

Judgments, estimates and underlying assumptions
are evaluated on an ongoing basis by management and are based on historical experience and other factors including expectations of future
events that are believed to be reasonable under the circumstances. However, existing circumstances and assumptions about future developments
may change due to market changes or circumstances and such changes are reflected in the assumptions when they occur.

Significant estimates required to be
made by management include, but are not limited to, allowance of expected credit losses. Actual results could differ from those estimates.

The measurement
of the expected credit loss allowance for financial assets measured at amortized cost is an area that requires the use of significant
assumptions about future economic conditions and credit behavior (e. g. the likelihood of customers defaulting and the resulting losses).
A number of significant judgements are also required in applying the accounting requirements for measuring expected credit loss, such
as:

  Assessing relevant historical and forward-looking quantitative and  
  Choosing appropriate models and assumptions for the measurement of  

Risks and uncertainties

The main operations
of the Company are located in Hong Kong. Accordingly, the Company’s business, financial condition, and results of operations may
be influenced by political, economic, and legal environments in Hong Kong, as well as by the general state of the economy in Hong Kong.
The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in Hong Kong. Although
the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations
including its organization and structure disclosed in Note 1, such experience may not be indicative of future results.

The Company’s
business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme
weather conditions, health epidemics and other catastrophic incidents, which could significantly disrupt the Company’s operations.

Following the Outbreak of COVID-19 (the
“ Outbreak”), a series of precautionary and control measures have been and will continue to be implemented in Hong Kong. The
directors of the Company