Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 171

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 18
Chunk 171
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 Standards Codification
(“ ASC”) 805 “ Business Combinations.” The cost of an acquisition is measured as the aggregate of the acquisition
date fair value of the assets transferred to the sellers, liabilities incurred by the Company and equity instruments issued by the Company.
Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets acquired and liabilities assumed
are measured separately at their fair values as of the acquisition date, irrespective of the extent of any noncontrolling interests.
The excess of (i) the total costs of acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously
held equity interest in the acquiree over (ii) the acquisition date amounts of the identifiable net assets of the acquiree is recorded
as goodwill. If the cost of acquisition is less than the acquisition date amounts of the net assets of the subsidiary acquired, the difference
is recognized directly in the consolidated income statements. During the measurement period, which can be up to one year from the acquisition
date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Subsequent
to the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever
comes first, any further adjustments are recorded in the consolidated income statements.

For
the Company’s non-wholly owned subsidiaries, a noncontrolling interest is recognized to reflect the portion of equity that is not
attributable, directly, or indirectly, to the Company.

Use
of estimates and assumptions

The
preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of
the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant
accounting estimates reflected in the Company’s consolidated financial statements include the useful lives of property and
equipment, the imputed interest rate of leases, impairment of long-lived assets, allowance for doubtful accounts, provision for
contingent liabilities, revenue recognition, deferred taxes and uncertain tax position. Actual results could differ from these
estimates.

Foreign
currency translation and transaction

The
functional currencies of the Company are the local currency of the country in which the subsidiaries operate. The reporting currency
of the Company is the Hong Kong Dollars (“ HK$”). The results of operations and the consolidated statements of cash flows
denominated in foreign currencies are translated at the average rates of exchange