Company: DTCK
Filing Date: 2025-12-23
Form Type: 6-K
Source: 0001683168-25-009327
Chunk: 17

Company: DAVIS COMMODITIES Ltd
Filing Date: 2025-12-23
Form: 6-K
Chunk 17
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 tax assets and liabilities,
accounting for interest and penalties associated with tax positions, and related disclosures.

The Company did not accrue any liability, interest
or penalties related to uncertain tax positions in its provision for income taxes line of its unaudited interim condensed consolidated
statements of income for the six-month periods ending June 30, 2024 and 2025, respectively. The Company does not expect that its
assessment regarding unrecognized tax positions will materially change over the next 12 months.

(u) Earnings per share

Basic earnings per share is computed by dividing
net earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year using
two class method. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue
ordinary shares were exercised or converted into ordinary shares.

| F-14 |

(v) Recent accounting pronouncements

Recent Adopted Standards

On October 28, 2021, the FASB issued ASU 2021-08,
which amends ASC 805 to require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities
in a business combination. Under current GAAP, an acquirer generally recognizes such items at fair value on the acquisition date. According
to the FASB, this Update is intended to improve the accounting for acquired revenue contracts with customers in a business combination
by addressing diversity in practice and inconsistency related to the following: (1) recognition of an acquired contract liability, and
(2) payment terms and their effect on subsequent revenue recognized by the acquirer. The ASU’s amendments are effective in fiscal
years beginning after December 15, 2022, including interim periods within those fiscal years for public business entities, and are effective
in fiscal years beginning after December 15, 2023, including interim periods within those fiscal years for all other entities. The Company
has adopted this guidance and the application has had no material impact on the financial position, results of operations and cash flows.

In June 2022, the FASB issued ASU 2022-03, “Fair
Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”, which clarifies
that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security
and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate