Company: RHNO
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001493152-25-022052
Chunk: 365

Company: RHINO BITCOIN INC.
Filing Date: 2025-11-13
Form: 10-K
Item: Item 4
Chunk 365
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    and fittings
     
    5
    years

Expenditures
for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property, plant and equipment is the difference
between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the Consolidated Statements of Operations
and Comprehensive Loss.

    F-10

PHOENIX PLUS CORP. (NOW KNOWN AS RHINO BITCOIN INC.)

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED JULY 31, 2025 AND 2024

(Currency
expressed in United States Dollars (“US$”), except for number of shares) 

Investment
under equity method

The
Company apply the equity method to account for investments it possesses the ability to exercise significant influence, but not control,
over the operating and financial policies of the investee. The ability to exercise significant influence is presumed when the investor
possesses more than 20% of the voting interests of the investee.

In
applying the equity method, the Company records the investment at cost and subsequently increase or decrease the carrying amount of the
investment by proportionate share of the net earnings or losses and other comprehensive income of the investee. The Company records dividends
or other equity distributions as reductions in the carrying value of the investment.

Measurement
of Credit Losses on Financial Instruments

The
Company adopted ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326), which replaces the incurred loss methodology
with an expected credit loss methodology known as the Current Expected Credit Loss (CECL) model. This new standard requires entities
to estimate credit losses over the life of a financial asset based on historical experience, current conditions, and reasonable forecasts.

The
adoption of the CECL model applies to the Company’s portfolio of trade receivables and other financial assets, and resulted in
changes to the methodology for determining the allowance for credit losses. Under the CECL model, the Company recognizes an allowance
for credit losses at the inception of a financial asset and adjusts it over the life of the asset based on updated expectations of credit
losses.

Income
taxes

The
provision of income taxes is determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”).
Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between