Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 173

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 173
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 and its subsidiaries. All transactions and balances among the Company and its
subsidiaries have been eliminated upon consolidation.

A subsidiary is an entity
in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial
and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at
the meeting of directors.

Use of estimates

The preparation of the consolidated
financial statements in conformity with U. S. 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 lease liabilities, right-of-use assets, determinations of the useful lives
and valuation of long-lived assets, estimates of allowances for credit loss and doubtful accounts, reserve for excess and obsolete inventory,
estimates of impairment of long-lived assets and goodwill, valuation allowances for deferred tax assets, other provisions and contingencies, contingent
consideration for acquisition, fair value of derivative liability and estimated fair value used in business acquisitions. Actual
results could differ from these estimates, and as such, differences may be material to the consolidated financial statements.

Foreign currency translation and transaction

Transactions denominated
in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates
of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the
functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in
the consolidated statements of operation and comprehensive income (loss).

The reporting currency of
the Company is United States Dollars (“ US$”) and the accompanying financial statements have been expressed in US$. The Company’s
subsidiaries in Singapore, Hong Kong, Malaysia, China, Brazil, the United Kingdom, and Dubai conduct their businesses and maintain their
books and records in US$, or local currencies of Singapore Dollars (“ SGD”), Hong Kong Dollar (“ HKD”), Malaysian
Ringgit (“ MYR”), Chinese Yuan (“ RMB”), Brazil Real (“ BRL”), and United Arab Emirates Dirham (“ AED”)
as their respective functional currencies.

In general, for consolidation
purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance