Company: CLIK
Filing Date: 2025-03-19
Form Type: F-1
Source: 0001213900-25-025112
Chunk: 183

Company: Click Holdings Ltd.
Filing Date: 2025-03-19
Form: F-1
Chunk 183
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 Standards Update (ASU) 2019 -05, which is an update to ASU Update No. 2016 -13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The Company adopted this standard on January 1, 2022, and such adoption did not result in a material change in the Company’s CFS. Accounts receivable are stated at their original invoiced amount. To measure impairment on accounts receivable, the Company adopted the expected credit losses (CECL) model, which is established on management’s historical collection experience, age of the receivable, the economic environment, industry trend analysis, and the current credit profile and financial condition of the customers. The Company classifies its customers into categories with similar risk characteristics. Each risk category is assigned a base loss rate, which is further adjusted upwards using an aging matrix. Management reviews its receivables on a regular basis to determine if the allowance for expected credit losses is adequate and adjusts the allowance, including the base loss rate and adjustment factors, when necessary. Delinquent account balances are written -offagainst the allowance for expected credit losses after all means of collection have been exhausted and that the likelihood of collection is not probable. G. Operating leases The Company adopted ASU 2016 -02, Leases (Topic 842) on January 1, 2022 using a modified retrospective approach reflecting the application of the standard to leases existing at, or entered after, the beginning of the earliest comparative period presented in the CFS. The Company leases its offices, which leases are classified as operating leases in accordance with Topic 842. Operating leases are required to be recorded in the balance sheet as right -of -useassets and lease liabilities, initially measured at the present value of the lease payments. The Company elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date, and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company elected the short -termlease exemption as the lease terms are 12 months or less. At the commencement date, the Company recognizes the lease liability at the present value of the lease payments