Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 196

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 18
Chunk 196
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 security and it is not more
likely than not that we will be required to sell the debt security before recovery of its amortized cost basis, we would separate the
difference between the amortized cost and the fair value of the debt security into the credit loss component and the noncredit loss component.
The credit loss component would be recognized in earnings and the noncredit loss component would be recognized as a component of other
comprehensive income.

Property, plant and equipment

Property, plant and equipment
is stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes expenditure that is directly
attributable to the acquisition of the items.

Subsequent costs are included
in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance
are charged to the consolidated statements of operations and comprehensive income during the financial period in which they are incurred.

Property, plant and equipment
is calculated using the straight-line method to allocate their cost less their residual values over their estimated useful lives at the
annual rate as follows:

                              Estimated                                                       
  Building                    2 - 20                                                          
  Plant and machinery                           13 - 20                                       
  Furniture and fixtures                        13 - 20                                       
  Motor vehicles                                13 - 20                                       
  Leasehold improvement                         Lesser of the lease term or estimated useful  

The assets’ useful
lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An item of property, plant
and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying
amount of the item) is included in consolidated statements of operations and comprehensive income in the period in which the item is
derecognized.

Gains or losses on disposals
are determined by comparing proceeds with carrying amount and are recognized within “ Other income (expense)” in the consolidated
statements of operations and comprehensive income.

F-14

J-LONG GROUP LIMITED

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

Impairment of long lived assets

The Company accounts
for impairment of long-lived assets in accordance with Accounting Standards Codification (“ ASC”) 360, Property