Company: SPPL
Filing Date: 2025-04-08
Form Type: 20-F
Source: 0001641172-25-003217
Chunk: 125

Company: SIMPPLE LTD.
Filing Date: 2025-04-08
Form: 20-F
Item: Item 18
Chunk 125
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 ITS SUBSIDIARIES

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

2
Summary of significant accounting policies (cont’d)

Impairment
of long-lived assets

The
Company evaluates the recoverability of its long-lived assets (asset groups), including property and equipment and operating lease right-of-use
assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of its asset (asset group) may not
be fully recoverable. When these events occur, the Company measures impairment but comparing the carrying amount of the assets to the
estimated undiscounted future cash flows expected to result from the use of the asset (asset group) and their eventual disposition. If
the sum of the expected undiscounted cash flows is less than the carrying amount of the asset (asset group), the Company recognizes an
impairment loss based on the excess of the carrying amount of the asset (asset group) over their fair value. Fair value is generally
determined by discounting the cash flows expected to be generated by the asset (asset group), when the market prices are not readily
available. The adjusted carrying amount of the asset is the new cost basis and is depreciated over the asset’s remaining useful
life. Long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely
independent of the cash flows of other assets and liabilities. For the years ended December 31, 2023 and 2024, no

Contract
assets and liabilities

The
Company bills its clients based upon contractual schedules. The timing of revenue recognition, billings and cash collections result in
accounts receivable, contract assets and contract liabilities.

Leases

The
Company is a lessee of non-cancellable operating leases for its corporate office premise and vehicles. The Company determines if an arrangement
is a lease at inception. Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement
date. The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing
rate based on the information available at the lease commencement date. The Company generally uses the base, non-cancellable lease term
in calculating the right-of-use assets and liabilities.

The
Company adopted the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease
component. Non-lease components include payments for building management, utilities and property tax. It separates