Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 315

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 315
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 events or changes in circumstances, such as a significant adverse change to market conditions that will
impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur,
the Company evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted
cashflows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows
is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of
the assets over their fair value. Fair value is generally determined through various valuation techniques including discounted cash flow
models, quoted market values and third-party independent appraisals, as considered necessary.

<div align='center'>F-71

BAN LEONG TECHNOLOGIES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in Singapore dollars (“$”)</div>

| 2. | Summary of significant accounting policies (continued) |

Comprehensive income

Comprehensive income is defined as the changes in equity of the Company
during a period from transactions and other events and circumstances excluding transactions resulting from investments by shareholders
and distributions to shareholders. Among other disclosures, ASC 220, Comprehensive Income, requires that all items that are required to
be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is displayed
with the same prominence as other financial statements. For each of the periods presented, the Company’s comprehensive income includes
net loss and foreign currency translation adjustments and is presented in the consolidated statements of comprehensive loss.

Leases

The Company determines if an arrangement
is a lease at inception in accordance with ASC 842, Leases (“ASC 842”). Leases are classified as operating or finance leases
in accordance with the recognition criteria in ASC 842-10-25. The Company’s leases do not contain any material residual value guarantees
or material restrictive covenants.

Lessee accounting

The Company recognizes right-of-use
(“ROU”) assets and liabilities on the lease commencement date based on the present value of lease payments over the lease
term. As the rate implicit in the Company’s leases is not typically readily available, the Company uses an incremental borrowing
rate based on the information available at the lease commencement date in determining the present value of lease payments. This incremental
borrowing rate reflects the fixed rate at which the Company could