Company: OSRH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076461
Chunk: 13

Company: OSR Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 13
---

operating capacity, and, where applicable, transfers from cash flow hedging reserves in equity. Costs of purchased inventory are determined
after deducting rebates and discounts received or receivable.

Stock in transit is stated at the lower
of cost and net realizable value. Cost comprises purchase and delivery costs, net of rebates and discounts received or receivable.

Net realizable value is the estimated
selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the
sale.

h.Equipment and vehicles

Equipment and vehicles are stated at
historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes expenditure that is directly
attributable to the acquisition of the items.

Depreciation of all equipment and vehicles
is calculated using the straight-line method to allocate their cost or revalued amounts, net of their residual values, over their estimated
useful lives as follows:

    Estimated 
    useful lives
  
    Vehicle 
    5 years
  
    Office equipment 
    5 years
  
    Facility equipment 
    3 to 13 years

The assets’ depreciation method,
residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

i.Goodwill and intangible assets

Goodwill represents the excess purchase
price over the estimated fair value of net assets acquired in a business combination.

The Group accounts for intangible assets
in accordance with Accounting Standards Codification (ASC) Topic 350, Intangibles – Goodwill and Other (ASC 350). ASC 350
requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives and reviewed for
impairment in accordance with accounting standards.

When impairment indicators are identified,
the Group compares the reporting unit’s fair value to its carrying amount, including goodwill. An impairment loss is recognized
as the difference, if any, between the reporting unit’s carrying amount and its fair value, to the extent the difference does not
exceed the total amount of goodwill allocated to the reporting unit.

8

Indefinite-lived intangible assets
are tested for impairment annually, and more frequently when there is a triggering event. Annually, or when there is a triggering event,
the Group first performs a qualitative assessment by evaluating all relevant events and circumstances to determine if it is more likely
than not that the indefinite-lived intangible assets are impaired; this includes considering any potential effect on significant inputs
to determining the fair value of