Company: OSRH
Filing Date: 2025-06-10
Form Type: S-1/A
Source: 0001213900-25-053114
Chunk: 60

Company: OSR Holdings, Inc.
Filing Date: 2025-06-10
Form: S-1/A
Chunk 60
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 issued ASU
2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which improves the transparency of income
tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation
and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income
tax disclosures. This ASU will be effective for the annual periods beginning the year ended December 31, 2026. Early adoption
is permitted. Upon adoption, this ASU can be applied prospectively or retrospectively. The Group is currently evaluating the impact this
ASU will have on the Group’s consolidated financial statements.

| (3) | Critical                             
 accounting estimates and assumptions |

The preparation of condensed consolidated
financial statements requires the Group to make estimates and assumptions concerning the future. Estimates and judgements are continually
evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable
under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates
and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within
the next financial year are discussed below.

Income taxes

The Group’s taxable income generated
from these operations are subject to income taxes based on tax laws and interpretations of tax authorities in numerous jurisdictions.
There are many transactions and calculations during the ordinary course of business for which the ultimate tax determination is uncertain.

Deferred tax assets are recognized for
deductible temporary differences and unused tax losses to the extent that it is probable that taxable profit will be available against
which the temporary differences and the losses can be utilized. Significant management judgement is required to determine the amount of
deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits, together with future
tax planning strategies

Business combinations

Business combinations are initially
accounted for on a provisional basis. The fair value of assets acquired, liabilities and contingent liabilities assumed are initially
estimated by the Parent taking into consideration all available information at the reporting date. Fair value adjustments on the finalization
of the business combination accounting is retrospective, where applicable, to the period the combination occurred and may have an impact
on the assets and liabilities, depreciation and amortization reported.

41

Patent technology

Patent technology is recognized in Intangible
assets on the condensed consolidated balance sheets. The Group considers both qualitative and quantitative factors when determining