Company: AGCC
Filing Date: 2025-10-22
Form Type: 424B4
Source: 0001213900-25-101076
Chunk: 207

Company: Agencia Comercial Spirits Ltd.
Filing Date: 2025-10-22
Form: 424B4
Chunk 207
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 exercise that option. Lease expense for lease payments is recognized on a straight -linebasis over the lease term. Lease payments may be fixed or variable; however, only fixed payments or in -substancefixed payments are included in the lease liability calculation. Variable lease payments, if any, are recognized in operating expenses in the period in which the obligation for those payments is incurred. For operating leases, lease expense is recognized on a straight -linebasis over the lease term. For finance leases, lease expense is recognized as amortization on a straight -linebasis over the lease term and interest using the effective interest method. Any lease with a term of 12 months or less is considered short -term. As permitted by ASC 842, short -termleases are excluded from the ROU assets and lease liabilities on the balance sheets. Consistent with all other operating leases, short -termlease expense is recorded on a straight -linebasis over the lease term. Income taxes The Company follows the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes. The Company accounts for income taxes in accordance with the laws and regulations of the relevant tax authorities. The charge for taxation is based on the results for the fiscal year as adjusted for items which are non -assessableor disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred taxes are accounted for using the asset and liability method in respect of temporary differences arising from the differences between the carrying amount of assets and liabilities in the combined financial statements and the corresponding tax bases used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated suing tax rates that are expected to apply to the period when the asset is realized, or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to