Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 118

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 5
Chunk 118
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 fiscal years, Early adoption is permitted for both interim and annual financial
statements that have not yet been issued(or made available for issuance). if an entity adopts the amendments in an interim period. it
must adopt them as of the beginning of the fiscal year that includes that interim period.

The amendments in this Update
require a cumulative-effect adjustment to the opening balance of retained earnings (or other appropriate components of equity or net assets)
as of the beginning of the annual reporting period in which an entity adopts the amendments.

In November 2021, the FASB
issued ASU 2021-10, Government Assistance (Topic 832) - Disclosures by Business Entities about Government Assistance (“ ASU
2021-10”). It requires issuers to make annual disclosures about government assistance, including the nature of the transaction,
the related accounting policy, the financial statement line items affected and the amounts applicable to each financial statement line
item, as well as any significant terms and conditions, including commitments and contingencies. The amendments in ASU 2021-10 are effective
for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. The Company adopted
the standard for the year ended December 31, 2022 and the adoption of this standard does not have a material impact on its consolidated
financial statements.

In August 2020, the Financial
Accounting Standards Board (“ FASB”) issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20)
and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) (“ ASU 2020-06”), which eliminates
two of the three models in ASC 470-20 that require separate accounting for embedded conversion features and eliminates some of the conditions
for equity classification in ASC 815-40 for contracts in an entity’s own equity. The guidance also requires entities to use the
if-converted method for all convertible instruments in the diluted earnings per share calculation and generally requires them to include
the effect of share settlement for instruments that may be settled in cash or shares. The Company adopted this standard on January 1,
2022, and such adoption did not impact on the consolidated financial statements.

In June 2016, the Financial
Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments-Credit
Losses (