Company: FWFW
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002097
Chunk: 174

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1C
Chunk 174
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$1=HK$7.81742 
    US$1=HK$7.84901

    US$1=AUD1.52416 
    US$1=AUD1.49816

    F-10

FLYWHEEL ADVANCED TECHNOLOGY, INC.

NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS

  (I) Other comprehensive (loss)/income

The
foreign currency translation gain or loss resulting from translation of the financial statements expressed in HK$ and AU$ to US$ is reported
as other comprehensive income or loss in the statements of operations and stockholders’ equity.

  (J) Employee benefit plans

Contributions
to defined contribution plans are expensed in the period in which services are rendered by the covered employees. The Company recognizes
its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates
to rights that vest or accumulate and payment is probable and estimable. Refer to Note 14.

  (K) Income taxes

The
Company accounts for income taxes under FASB Codification Topic 740-10-25 (“ASC 740-10-25”). Under ASC 740-10-25, deferred
tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered
or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in
the period included the enactment date.

  (L) Earning per share

Basic
earnings(loss) per share are computed by dividing income available to stockholders by the weighted average number of shares outstanding
during the year. Diluted income per share is computed like basic income per share except that the denominator is increased to include
the number of additional shares that would have been outstanding if the potential shares had been issued and if the additional shares
were diluted. There were no potentially dilutive securities for 2024 and 2023.

  (M) Commitments and contingencies

Liabilities
for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable
that a liability has been incurred and the amount of the assessment and/or remediation