Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 236

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 19
Chunk 236
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able. Lease expense is recognized on a straight-line basis over the lease term and are included in general and administrative
(“ G& A”) expenses.

Revenue Recognition

The Company considers revenue realized
or realizable and earned when all the five following criteria are met: (1) Identify the Contract with a Customer, (2) Identify the Performance
Obligations in the Contract, (3) Determine the Transaction Price, (4) Allocate the Transaction Price to the Performance Obligations in
the Contract, and (5) Recognize Revenue When (or as) the Entity Satisfies a Performance Obligation. The Company has assessed the impact
of the guidance by reviewing its existing customer contracts and current accounting policies and practices to identify differences that
will result from applying the new requirements, including the evaluation of its performance obligations, transaction price, customer
payments, transfer of control and principal versus agent considerations. Based on the assessment, the Company concluded that there was
no change to the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606 and therefore there
was no material changes to the Company’s consolidated financial statements upon adoption of ASC 606.

Revenue may be recognized at a point
in time or over time following the timing of satisfaction of the performance obligation. If a performance obligation is satisfied over
time, revenue is recognized based on the percentage of completion reflecting the progress towards complete satisfaction of that performance
obligation.

The Company’s revenues are primarily
from the provision of (i) integrated cross-border logistics services, which including supporting transportation for freight forwarding
purpose, storage of consignment, labelling of consignments, other related logistic services for freight forwarding purpose, freight management
services, and delivery at destination, and (ii) air freight forwarding services.

Integrated cross-border logistics
services

In general, each logistics order constitutes
a separate contract with the customer. A performance obligation is created once a customer agreement with an agreed upon transaction
price exists. The transaction price is typically fixed and not contingent upon the occurrence or non-occurrence of any other event. The
transaction price is generally due 7 to 90 days from the date of invoice. The Company’s logistics services provide for the arrangement
of the movement of shipments to a customer’s destination. The logistics services, including certain ancillary services, such as
loading/unloading and customs clearance, that are provided to the customer represent a single performance obligation as these promises
aren’t distinct in the context of the