Company: GRAN
Filing Date: 2025-03-14
Form Type: F-1/A
Source: 0001213900-25-023979
Chunk: 251

Company: Grande Group Ltd/HK
Filing Date: 2025-03-14
Form: F-1/A
Chunk 251
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 issued ASU 2016 -13, “Financial Instruments — Credit Losses” (Topic 326) to replace the incurred loss impairment methodology under US GAAP. This ASU introduces a new accounting model, the Current Expected Credit Losses model (“CECL”), which could result in earlier recognition of credit losses and additional disclosures related to credit risk. The CECL model will require the Company to use a forward -lookingexpected credit loss impairment methodology for the recognition of credit losses for financial instruments at the time the financial asset is originated or acquired, and require a loss be incurred before it is recognized. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. The new standard will apply to accounts receivable, amounts due from a related party and other financial instruments. This standard is effective for the Company for its fiscal year beginning after December 15, 2022. Adoption of ASU 2016 -13will be applied using a modified retrospective approach through a cumulative -effectadjustment to retained earnings as of the effective date. The Company early adopted ASU 326 effective April 1, 2022, the first day of the Company’s fiscal year. The adoption of ASC 326 did not have a material impact on the Company’s financial position, results of operations or cash flows. Effective April 1, 2021, the Company adopted ASU 2016 -02, “Leases” (Topic 842), and elected the practical expedients that do not require the Company to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. For lease terms of twelve months or fewer, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. The Company also adopted the practical expedient that allows lessees to treat the lease and non -leasecomponents of a lease as a single lease component. Effective April 1, 2022, the Company adopted ASU 2021 -10, “Government Assistance: Disclosures by Business Entities about Government Assistance” (Topic 832), which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements and any significant terms and conditions of the agreements, including commitments and contingencies