Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 87

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4A
Chunk 87
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 basis for making judgments about the carrying values of assets and liabilities that
are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

We
believe that the following estimates are those most critical to the judgments used in the preparation of our financial statements. For
a complete discussion of all of our significant accounting policies, see Note 2. “ Summary of Significant Accounting Policies”
in the Notes to Consolidated Financial Statements in this Form 20-F.

Evaluation
of inventories

Inventories
are stated at the lower of cost or estimated net realizable value. Costs are computed under the standard cost method, which approximates
actual costs determined on the weighted-average basis. The Group records inventory write-downs as cost of revenue for excess
or obsolete inventories based upon assumptions on current and future demand forecasts. If the inventory on hand is in excess of future
demand forecast, the excess amounts are written off. The Group also reviews inventory to determine whether its carrying value exceeds
the net amount realizable upon the ultimate sale of the inventory. This requires the determination of the estimated selling price of
the inventory less the estimated cost to convert inventory on hand into a finished product. Once inventory is written-down, a new, lower-cost basis
for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that
newly established cost basis.

Recent
Accounting Pronouncements

For
a discussion of our new or recently adopted accounting pronouncements, see Note 2(ab) “ Recent accounting pronouncements”
to the Group’s consolidated financial statements included in this Report.

ITEM
6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES