Company: BGHL
Filing Date: 2025-08-29
Form Type: F-1
Source: 0001213900-25-082403
Chunk: 173

Company: BILLION GROUP HOLDINGS Ltd
Filing Date: 2025-08-29
Form: F-1
Chunk 173
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 not distinguish between markets or segments for the purpose of internal reporting. Accordingly, no segment or geographic information has been presented. (d)Use of estimates The preparation of these combined financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected. Area requiring a significant degree of estimation include allowance for credit losses. (e)Financial instruments Financial instruments of the Group primarily consist of cash and cash equivalents, accounts receivable, other current assets, amounts due with former related companies, accounts payable and accrued expenses and other current liabilities. The carrying values of the Group’s financial instruments approximate their fair values, principally because of the short -termmaturity of these instruments or their terms. The Group has no derivative financial instruments. (f)Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have maturities of three months or less when purchased. F-8 BILLION GROUP HOLDINGS LIMITED
NOTES TO THE COMBINED FINANCIAL STATEMENTS 1. SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (cont.) (g)Revenue recognition Sales of food products are for cash or otherwise agreed -uponcredit terms. Our payment terms vary by customer. Our revenue generating activities have a single performance obligation and are recognized at the point in time when control transfers and our obligation have been fulfilled, which is when the ownership of the related goods are transferred to the customer. We have elected to treat transportation as a fulfillment activity. Revenue is measured as the amount of consideration we expect to receive in exchange for our products. Our sales terms do not allow for a right of return except for matters related to any defects on our part. Principal vs. Agent Considerations In accordance with the guidance under ASC 606, the Group has assessed whether it acts as a principal or an agent in transactions involving customers and food suppliers. The Group has concluded that it acts as a principal, as it controls the underlying food products before they are transferred to the end users (customers). The Group obtains control of the food products before they are transferred to end users (customers), and it has the ability to direct the food suppliers to supply the food products as well as logistics services. The Group