Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 20

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 cost method is used when the Company has a passive, long-term investment that doesn’t result in influence over the Company.
The cost method is used when the investment results in an ownership stake of less than 20%, and there is no substantial influence.
Under the cost method, the stock purchased is recorded on the balance sheet as a non-current asset at the historical acquisition/purchase
price, and is not modified unless shares are sold, additional shares are purchased or there is evidence of the fair market value of the
investment declining below carrying value. Any dividends received are recorded as income.

k)Plant and Equipment

Plant and equipment is stated at cost,
less accumulated depreciation. Plant and equipment with costs greater than $1,000 are capitalized and depreciated. Depreciation is
computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of the assets are
as follows:

  Description   Estimated Useful Life   Computer equipment    3 years           Office equipment    10 years  

The cost of repairs and maintenance
is expensed as incurred. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts,
and any resulting gains or losses are included in income in the year of disposition.

l)Long-Term
Assets

Assets are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets
to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to
be generated by the asset. If such assets are considered impaired, the impairment to be recognized is measured by the amount by which
the carrying amount of the assets exceeds the fair value of the assets.

11

INNOVATIVE PAYMENT SOLUTIONS, INC.

Notes to the Unaudited
Condensed Financial Statements

2ACCOUNTING
POLICIES AND ESTIMATES (continued)

m)Revenue Recognition

The Company’s revenue recognition
policy is consistent with the requirements of FASB ASC 606, Revenue.

The Company’s revenues are recognized
when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company
expects to receive in exchange for those services. The Company derives its revenues from the sale of its services, as defined below. The
Company applies the following five steps in