Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 169

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 169
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 if they are subject to common control or significant influence, such
as a family member or relative, shareholder or a related corporation.

(h) Inventories

Inventories are stated at the lower of cost or
net realizable value. The cost of raw materials is determined on the basis of standard costing. The cost of finished goods is determined
on the basis of standard costing and comprises direct materials, direct labor cost and an appropriate proportion of overhead.

Net realizable value is based on estimated selling
prices less selling expenses and any further costs of completion. Adjustments to reduce the cost of inventory to net realizable value
are made, if required, for estimated excess, obsolescence, or impaired balances. Write-downs are recorded in the consolidated and combined
statements of operations and comprehensive loss.

(i) Property,
plant and equipment, net

Property, plant and equipment, net is stated at
cost less accumulated depreciation and impairment, if any, and depreciated on a straight-line basis over the estimated useful lives of
the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. Estimated
useful lives are as follows:

  Category                        Estimated useful lives  
 ──────────────────────────────────────────────────────────
  Property and buildings          3 - 40 years            
  Machinery                       1 - 15 years            
  Operating equipment             3 - 7 years             
  Office and other equipment      2 - 15 years            
  Leasehold improvements          1 - 20 years            

Repair and maintenance costs are charged to expenses
as incurred, whereas the cost of renewals and betterment that extends the useful lives of property, plant and equipment are capitalized
as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the costs, accumulated depreciation
and impairment with any resulting gain or loss recognized in the consolidated statements of operations and comprehensive loss.

Construction in progress represents property,
plant and equipment under construction and pending installation and is stated at cost less accumulated impairment losses, if any. Completed
assets are transferred to their respective asset classes and depreciation begins when an asset is ready for its intended use. Interest
expense on outstanding debt is capitalized during the period of significant capital asset construction. Capitalized interest expense on
construction in progress is included within property, plant and equipment and is amortized over the life of the related assets.

(j) Intangible assets, net

Intangible assets are carried at cost less accumulated