Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 180

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 18
Chunk 180
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 scope of the affected accounting guidance. This update contains amendments to the Codification that remove references
to various Concepts Statements. In most instances, the references are extraneous and not required to understand or apply the guidance.
In other instances, the references were used in prior statements to provide guidance in certain topical areas. ASU 2024-02 is effective
for public business entities for fiscal years beginning after December 15, 2024. For all other entities, the amendments are effective
for fiscal years beginning after December 15, 2025. Early adoption is permitted for both interim and annual financial statements that
have not yet been issued or made available for issuance. The Company does not expect to adopt this guidance early and does not expect
the adoption of this ASU to have a material impact on its future consolidated financial statements.

In
November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (DISE), which requires new disclosures to disaggregate
prescribed natural expenses underlying any income statement caption. This ASU is effective for annual periods in fiscal years beginning
after December 15, 2026, and interim periods thereafter. Early adoption is permitted. The ASU applies on a prospective basis for periods
beginning after the effective date. However, retrospective application to any or all prior periods presented is permitted. The Company
is currently evaluating the impact of adoption of this standard on its consolidated financial statements.

Except
for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated
financial position, statements of operations and cash flows.

Concentrations
of Risks

(a)
Foreign currency risk

A
majority of the Group’s revenue and expense transactions are denominated in the functional currency of its subsidiaries.

For
the Hong Kong operation, as the HK dollar is pegged to the US dollar since 1983, and since May 2005, the US$ 1 is within the range of HK$
7.75 to HK$ 7.85, management considered that the foreign currency risk for the Hong Kong dollar is limited under the pegging
arrangement.

For
the PRC operations, the RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are
required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China
(“ PBOC”). It is