Company: OSRH
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109054
Chunk: 13

Company: OSR Holdings, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 measured based on the number of days since the payment due date. The trade receivables
are evaluated individually for expected credit losses if they no longer share similar risk characteristics. The Group determines that
the receivables no longer share similar risk characteristic if they are past due balances over 90 days and over a specified amount.
The Group evaluates the collectability of trade accounts receivables with payments that are more than 90 days past due on an individual
basis to determine if any are deemed uncollectible. Trade accounts receivable balances are deemed uncollectible and written off as a deduction
from the allowance after all means of collection have been exhausted.

f.Accounts receivable

Accounts receivables are recorded at
the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in cash flows from operating
activities in the condensed consolidated statements of cash flows.

g.Inventories

Inventories are stated at the lower
of cost or net realizable value and cost is determined by the first-in, first-out method. Cost comprises of direct materials and delivery
costs, direct labor, import duties and other taxes, an appropriate proportion of variable and fixed overhead expenditure based on normal
operating capacity, and, where applicable, transfers from cash flow hedging reserves in equity. Costs of purchased inventory are determined
after deducting rebates and discounts received or receivable.

Stock in transit is stated at the lower
of cost and net realizable value. Cost comprises of purchase and delivery costs, net of rebates and discounts received or receivable.

Net realizable value is the estimated
selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the
sale.

h.Equipment and vehicles

Equipment and vehicles are stated at
historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes expenditure that is directly
attributable to the acquisition of the items.

Depreciation of all equipment and vehicles
is calculated using the straight-line method to allocate their cost or revalued amounts, net of their residual values, over their estimated
useful lives as follows:

    Estimated 
useful lives

    Vehicle
     
    5 years

    Office equipment
     
    5 years

    Facility equipment
     
    3 to 13 years

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