Company: AGCC
Filing Date: 2025-06-03
Form Type: DRS/A
Source: 0001213900-25-050599
Chunk: 195

Company: Agencia Comercial Spirits Ltd.
Filing Date: 2025-06-03
Form: DRS/A
Chunk 195
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 liability method in respect of temporary differences arising from the differences between the carrying amount of assets and liabilities in the combined financial statements and the corresponding tax bases used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated suing tax rates that are expected to apply to the period when the asset is realized, or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% probability of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. No penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. Segment In accordance with ASC 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision -makingCompany, in deciding how to allocate resources and in assessing performance. The Company utilizes the “management approach” to identify its reportable operating segments. F-12 AGENCIA COMERCIAL SPIRITS LTD NOTES TO THE COMBINED FINANCIAL STATEMENTS FOR THE FINANCIAL YEARS ENDED DECEMBER 31, 2023 AND 2024 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) The management approach considers the internal organizational structure and reporting mechanisms employed by the Company’s CODM for operational decision -makingsand performance evaluation. The Company’s chief executive officer is designated as the Company’s CODM, who reviews and evaluates the consolidated results to determine resource allocation and assess the Company’s overall performance. After a thorough analysis, the Company has concluded that it operates within only one reportable operating segment. The Company’s