Company: SPPL
Filing Date: 2025-04-08
Form Type: 20-F
Source: 0001641172-25-003217
Chunk: 123

Company: SIMPPLE LTD.
Filing Date: 2025-04-08
Form: 20-F
Item: Item 18
Chunk 123
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 consolidated balance sheet, consolidated statements of operations and comprehensive income and consolidated statements of
cash flow from S$ into US$ as of and for the year ended December 31, 2024 are solely for the convenience of the reader and were
calculated at the rate of US$ 0.732

SIMPPLE
LTD. AND ITS SUBSIDIARIES

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

2
Summary of significant accounting policies (cont’d)

Use
of estimates

The
preparation of consolidated financial statements in conformity with US GAAP requires management to make judgements, estimates and assumptions
that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated
assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances,
the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent
from other sources. Significant accounting estimates reflected in the Company’s consolidated financial statements include allowance
for credit losses on receivables, impairment of intangible assets, the useful lives of property and equipment, and interest rate of leases.
Actual results may differ from these estimates.

Cash
and cash equivalents

Cash
and cash equivalents mainly represent cash at bank and demand deposits which have original maturities less than three months and are
unrestricted as to withdrawal or use.

Deposits
and prepayments

Deposits
and prepayments are classified as either current or non-current based on the terms of the respective agreements. Management reviews its
deposits and prepayments on a regular basis to determine if the allowance is adequate and adjusts the allowance when necessary. As of
December 31, 2023 and 2024, no allowance was deemed necessary.

Account
receivables and allowance for expected credit losses

Account
receivables mainly represent amounts due from clients for sale of goods and services fees which are recorded net of allowance.
Management reviews its receivables on a regular basis to determine if the allowance for expected credit loss is adequate and
provides allowance when necessary. The allowance is based on management’s best estimates of specific losses on individual
customer exposures, as well as the historical trends of collections. Account balances are charged off against the allowance after
all means of collection have been exhausted and the likelihood of collection is not probable. As of December 31, 2023 and 2024, the
Company