Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 1116

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 1116
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result in influence over the Company. The cost method is used when the investment results in an ownership stake of less than 20%,
and there is no substantial influence. Under the cost method, the stock purchased is recorded on a balance sheet as a non-current asset
at the historical acquisition/purchase price, and is not modified unless shares are sold, additional shares are purchased or there is
evidence of the fair market value of the investment declining below carrying value. Any dividends received are recorded as income.

The
Company uses the equity method , in terms of ASC 323, Equity Method and Joint Ventures, to account for investments when the investment
results in an ownership stake greater than 20% or the Company exerts significant influence over the operations and management of the investment.
Under the equity method, the investment is recorded on the balance sheet as a non-current asset, initially at historical cost and is adjusted
for the Company’s proportionate share of any gains and losses reported by the equity method investment. Any dividends received from
equity method investments decreases the carrying value of the investment. Any additional investment or disposal of a portion of the investment
will result in a change in basis adjustment to the carrying value of the investment which will be evaluated to determine if equity method
accounting is still appropriate. Equity method investments are evaluated to determine if the fair market value has declined below carrying
value, which will result in an impairment charge.

F-11

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

2ACCOUNTING POLICIES AND ESTIMATES
(continued)

l)Plant and Equipment

Plant
and equipment is stated at cost, less accumulated depreciation. Plant and equipment with costs greater than $1,000 are capitalized
and depreciated. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The estimated
useful lives of the assets are as follows:

  Description  Estimated Useful Life        Computer equipment  3 years        Office equipment  10 years 

The
cost of repairs and maintenance is expensed as incurred. When assets are retired or disposed of, the cost and accumulated depreciation
are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition.

m)Long-Term Assets

Assets
are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of