Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 181

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 181
---
 determine if it is more likely than not that goodwill is impaired. However,
this ASU eliminates the requirement to perform a qualitative assessment for any reporting unit with zero or negative carrying amount.

For the year ended March
31, 2024, management evaluated the recoverability of goodwill by comparing the fair value of a reporting unit with its carrying amount.
The Company had engaged with a third-party appraiser in assessing the fair value of the game distribution reporting unit by applying income
approach which considers the present value of the game distribution reporting unit’s future after-tax cash flows, discounting them
to present value using a13.0% discount rate. As a result, the fair value of the game distributing reporting unit’s fair value exceeds
its carrying value, and therefore, no impairment loss on goodwill was recognized for the year ended March 31, 2024.

For the years ended March 31,
2025 and March 31, 2023, management evaluated impairment of goodwill by performing qualitative assessment on its reporting units and determined
that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, and therefore, no impairment
loss on goodwill was recognized for the years ended March 31, 2025 and 2023.

Impairment for long-lived assets

In accordance with ASC 360-10,
long-lived assets, including property and equipment with finite lives, are reviewed for impairment loss whenever events or changes in
circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that
the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted
future cash flows the assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flows
expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying
value of the assets. If an impairment loss is identified, the Company will reduce the carrying amount of the asset to its estimated fair
value based on a discounted cash flows approach, or, when available and appropriate, comparable market values. As of March 31, 2025
and 2024, no impairment of long-lived assets was recognized.

F-14

GCL GLOBAL HOLDINGS LTD
AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS

Derivative