Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 172

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 172
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 by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash
flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow
is less than the carrying amount of the assets, the Group would recognize an impairment loss, which is the excess of carrying amount over
the fair value of the assets, using the expected future discounted cash flows.

There was no impairment of long-lived assets recognized
for the years ended December 31, 2024 and 2023.

(p) Fair value
measurement

Fair value is defined as the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize
the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as
follows:

  Level 1 —      inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.  
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  Level 2 —      inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices    
                 for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived  
                 from or corroborated by observable market data.                                                                                         
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  Level 3 —      inputs to the valuation methodology are unobservable.  
 ────────────────────────────────────────────────────────────────────────

The level in the fair value hierarchy within which
a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in
its entirety. In situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair
value measurement reflects management’s own judgments about the assumptions that market participants would use in pricing the asset
or liability. Those judgments are developed by management based on the best information available in the circumstances.

Financial assets and liabilities of the Group
primarily consist of cash and cash equivalents, restricted
cash, accounts and notes receivable, amounts due from related parties, investments,