Company: CHOW
Filing Date: 2025-01-13
Form Type: DRS/A
Source: 0001493152-25-001833
Chunk: 197

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-01-13
Form: DRS/A
Chunk 197
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 evaluates each promised good or service in a contract to determine whether it is distinct in accordance with the criteria outlined in ASC 606-10-25-19 through 25-22.

A performance obligation is distinct if both of the following criteria are met:

| 1. | The                                                                                            
 customer can benefit from the good or service either on its own or together with other readily 
 available resources.                                                                           |
| 2. | The                                                                                            
 promise to transfer the good or service is separately identifiable from other promises in      
 the contract.                                                                                  |

The transaction price is allocated to each performance obligation based on their relative standalone selling prices (SSP). SSPs are determined using observable prices of goods or services when sold separately, or, when observable prices are not available, estimated using expected cost-plus margin approaches. Revenue for each performance obligation is recognized either at a point in time or over time, depending on when control of the performance obligation transfers to the customer.

| F-13 |

Contract Scenarios with Multiple Promises:

1. Sale of Hardware Products with IT Professional Services (e.g., Setup, Development, Customization, or Integration Services)

| ● | Evaluation                                                                                                                                   
 of Distinctness: The Company evaluates whether the hardware and IT professional services                                                     
 (e.g., setup, development, customization) are distinct within the context of the contract.                                                   
 While the hardware may provide standalone functionality, the IT professional services are                                                    
 highly interdependent and interrelated with the hardware to produce a combined output—a                                                      
 functional and integrated solution.                                                                                                          
 This assessment aligns with the principle in ASC                                                                                             
 606-10-25-21 and the guidance in BC32, which emphasizes that the evaluation of distinctness should consider the level of integration,        
 interrelation, and interdependence among promises in the context of a bundle of goods and services. The Company determined that the hardware 
 and IT professional services significantly affect each other’s utility to the customer, making them not separately identifiable.             
 The customization and integration services use the hardware as an input to fulfill a single promise to the customer, consistent with         
 BC33(a). As a result, the hardware and services are combined into a single performance obligation.                                           |
| ● | Revenue                                                                                                                                      
 Recognition: Revenue is recognized at the point in time when control transfers to the                                                        
 customer, typically upon completion of the hardware delivery and related services, as evidenced                                              
 by a signed Customer Acceptance Form.                                                                                                        |

2. Sale of Software and IT Application Products with IT Professional