Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 178

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 178
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) Foreign
currency transactions and translations

Transactions denominated in currencies other than
the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction.
Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency
using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the consolidated statements
of operations and comprehensive loss.

The reporting currency of the Group is United
States Dollars (“ US$”) and the accompanying consolidated financial statements have been expressed in US$. The functional currency
of FST Taiwan is the Taiwan dollars (“ TWD”). The Group’s subsidiaries in US and Japan conduct their businesses and maintain
its books and record in the local currency, US$ and Japan Yen(“ JPY”), as their functional currency, respectively.

In general, for consolidation purposes, assets
and liabilities of FST and its subsidiary whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30,
“ Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated
at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiary
are recorded as a separate component of accumulated other comprehensive loss within the statements of shareholders’ equity. Cash
flows are also translated at average translation rates for the periods; therefore, amounts reported on the statement of cash flows will
not necessarily agree with changes in the corresponding balances on the consolidated balance sheets.

Translation of foreign currencies into US$1have
been made at the following exchange rates for the respective periods:

                                         For the Years Ended                                        
                                                December 31,                                        
                                                        2024                    2023                
 ────────────────────────────────────────────────────────────────────────────────────────────────────
  Period end USD: TWD exchange rate                                32.7900                 30.6200  
  Average USD: TWD exchange rate                                   32.1064                 31.1525  
  Period end USD: JPY exchange rate                               157.3700                140.9200  
  Average USD: JPY exchange rate                                  151.4551                140.5001  

(w) Comprehensive
loss

Comprehensive loss consists of two components,
net loss and other comprehensive loss. The foreign currency translation gain or loss resulting from translation of the consolidated financial
statements expressed in TWD/JPY to USD is reported in other comprehensive loss