Company: JOCM
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-022470
Chunk: 10

Company: JOCOM HOLDINGS CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 10
---
, thus the useful life of the asset shall be considered to be indefinite.

Credit
losses

The
Company estimates and records a provision for its expected credit losses related to its financial instruments, including its trade receivables.
Management considers historical collection rates, the current financial status of the Company’s customers, macroeconomic factors,
and other industry-specific factors when evaluating current expected credit losses. Forward-looking information is also considered in
the evaluation of current expected credit losses. However, because of the short time to the expected receipt of accounts receivable,
management believes that the carrying value, net of expected losses, approximates fair value and therefore, relies more on historical
and current analysis of such financial instruments, including its trade receivables.

Credit
loss rate is determined by historical collection based on aging schedule, adjusted for current conditions using reasonable and supportable
forecasts. Based on the aging categorization and the adjusted loss rate per category, an allowance for credit losses is calculated by
multiplying the adjusted loss rate with the amortized cost in the respective age category.

    F-7

JOCOM
HOLDINGS CORP.

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

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

(UNAUDITED)

Income
taxes

Income
taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”).
Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between
the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities
are measured using enacted income tax rates expected to apply to taxable income in the periods in which those temporary differences are
expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income
in the period that includes the enactment date.

ASC
740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements
uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the
financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax
positions must initially and subsequently