Company: OSRH
Filing Date: 2025-01-31
Form Type: 424B3
Source: 0001213900-25-008874
Chunk: 228

Company: OSR Holdings, Inc.
Filing Date: 2025-01-31
Form: 424B3
Chunk 228
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. Under IFRS, while there are similar recognition criteria, there are differences — e.g., deferred tax assets and liabilities are recorded based on the tax rates and laws enacted, or substantively enacted, at the reporting date. While U.S. GAAP requires gross presentation where deferred tax assets are recognized with a valuation allowance further recognized if it is not more likely than not that the deferred tax assets will be realized, IFRS requires net presentation where deferred tax assets are recognized only to the extent it’s probable that they will be realized. 
 OSR Holdings’ deferred tax assets are, among other timing differences, primarily comprised of future tax benefits from identifiable intangible assets such as patent technology and goodwill through business acquisitions. OSR Holdings’ assessment of deferred tax assets through IFRS have been applied consistently with U.S. GAAP, resulting in no material accounting differences between IFRS and U.S. GAAP, though an immaterial difference is presented due to the difference in accounting treatment of common control transactions under U.S. GAAP and IFRS described below.                                                                                                                                                                                                                                                             |
| Common Control Transactions |     | A business combination involving entities under common control is a business combination in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the combination and that control is not transitory.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                             |     | Under U.S. GAAP, the acquirer in its consolidated financial statements shall use ‘book value (carry-over basis) accounting’ on the basis that the investment has simply been moved from one part of the group to another. The acquirer is required to account an acquisition as if it had occurred at the beginning of the earliest comparative period presented or, if later, at the date that common control was established. While U.S. GAAP requires ‘book value accounting’, under IFRS the acquirer is permitted to elect an accounting policy to use ‘book value accounting’ or ‘acquisition accounting’ in its consolidated financial statements.                                                                                                                                                                                           
 In December 2022, OSR Holdings acquired 100% of the outstanding shares of Vaximm from BCME, which is deemed a common control transaction. Based on OSR Holdings’ current accounting policy under IFRS, OSR Holdings applied acquisition accounting for the acquisition of Vaximm. Thus, OSR Holdings made a U.S. GAAP adjustment to its unaudited pro forma condensed combined balance sheet to eliminate goodwill of KRW 11,716,110,