Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 90

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 4A
Chunk 90
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 judgments
and assumptions that are significant to understanding our results. Although we believe that our estimates, assumptions and judgments are
reasonable, they are based upon information presently available. Actual results may differ significantly from these estimates under different
assumptions, judgments or conditions.

Principles of consolidation

The accompanying consolidated financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America (“ US GAAP”)
and have been consistently applied. The accompanying consolidated financial statements include the financial statements of E-Home Household
Service Holdings Limited and its subsidiaries. All inter-company balances and transactions have been eliminated upon consolidation.

Leases

From July 1, 2018, the Group adopted Accounting
Standards Update (“ ASU”) 2016-02, Lease (FASB ASC Topic 842). The adoption of Topic 842 resulted in the presentation of operating
lease right-of-use (“ ROU”) assets and operating lease liabilities on the consolidated balance sheet. The Group has elected
the package of practical expedients, which allows the Group not to reassess (1) whether any expired or existing contracts as of the adoption
date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct
costs for any expired or existing leases as of the adoption date. Lastly, the Group elected the short-term lease exemption for all contracts
with lease terms of 12 months or less.

At the inception of a contract, the Group assesses
whether a contract is, or contains, a lease. A contract is or contains a lease if it conveys the right to control the use of an identified
asset for a period of time in exchange for consideration. To assess whether a contract is or contains a lease, the Group assesses whether
the contract involves the use of an identified asset, whether it has the right to obtain substantially all the economic benefits from
the use of the asset, and whether it has the right to control the use of the asset.

The right-of-use assets and related lease liabilities are recognized
at the lease commencement date. The Company recognizes operating lease expenses on a straight-line basis over the lease term.

Right-of-use of assets

The Company recognises right-of-use assets at
the commencement date of the lease (i. e., the date the underlying asset is available for use). Right-of-use assets are measured at cost,
less any accumulated depreciation and impairment losses, and adjusted for any remeasurement