Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 43

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 43
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aggregation of
Income Statement Expenses (“ASU 2024-03”), and in January 2025, the FASB issued ASU No. 2025-01, Income Statement -
Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (“ASU
2025-01”). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well
as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU
2024-03, as clarified by ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim
periods within annual reporting periods beginning after December 15, 2027. Both early adoption and retrospective application are
permitted. The Group is currently evaluating the adoption of this guidance whether or not a material impact on the Company’s
condensed consolidated financial statements.

In July 2025, the Financial Accounting Standards Board
(“FASB”) issued Accounting Standards Update (“ASU”) 2025-05, Measurement of Credit Losses for Accounts Receivable
and Contract Assets. ASU 2025-05 amends ASC 326, Financial Instruments—Credit Losses, and introduces a practical expedient available
for all entities and an accounting policy election available for all entities, other than public business entities, that elect the practical
expedient. These changes apply to the estimation of expected credit losses for current accounts receivable and current contract assets
arising from transactions accounted for under ASC 606, Revenue from contracts with customers. Under the practical expedient, entities
may assume that current conditions as of the balance sheet date remain unchanged for the remaining life of the asset when developing reasonable
and supportable forecasts. This simplifies the estimation process for short-term financial assets. ASU 2025-05 is effective for the Company’s
annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with
early adoption permitted. ASU 2025-05 should be applied on a prospective basis. The Company is currently evaluating the adoption of this
guidance whether or not a material impact on the Company’s condensed consolidated financial statements.

The Company has considered all other recently issued
accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its condensed consolidated