| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis
of presentation The
consolidated financial statements for Jocom Holdings Corp. and its subsidiaries (‘the Company’) for the three months ended
March 31, 2023 are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”)
and include the accounts of Jocom Holdings Corp. and its wholly owned subsidiary, Jocom Holdings Corp. The Company has adopted December
31 as its fiscal year end. Basis
of consolidation The
condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company accounts and
transactions have been eliminated upon consolidation. Revenue recognition The Company follows the guidance of ASC 606, “Revenue
from Contracts” The revenue generated was a service fee
paid by a client to carry out data analytic services in the Southeast Asia online grocery market. Use
of estimates Management
uses estimates and assumptions in preparing these financial statements in accordance with US GAAP. Those estimates and assumptions affect
the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities in the balance sheets, and the reported
revenue and expenses during the periods reported. Actual results may differ from these estimates. Cash
and cash equivalents Cash
and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions
and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. Intangible
Asset The
Company follows the guidance according ASC Topic 350, “Testing Indefinite-Lived Intangible Assets for Impairment” Plant
and equipment Plant
and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated
on the straight-line basis over the following expected useful lives from the date on which they become fully operational. SCHEDULE
OF USEFUL LIFE PROPERTY PLANT AND EQUIPMENT
Categories Estimated
useful life
Renovation 2 Expenditures
for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of plant and equipment is the difference between
the net sales proceeds and the carrying amount of the relevant assets and is recognized in the statement of operations Leases The
Company recognizes lease payments for its short-term lease on a straight-line basis over the lease term in accordance with ASC 842. The
right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments
made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. Costs associated
with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. In
determining the present value of the unpaid lease payments, ASC 842 requires a lessee to discount its unpaid lease payments using the
interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. As most of the Company
leases do not provide an implicit rate, the Company uses its incremental borrowing rate as the discount rate for the lease. The Company
incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments. JOCOM
HOLDINGS CORP. NOTES
TO CONDENSED FINANCIAL STATEMENTS FOR
THE THREE MONTHS ENDED MARCH 31, 2021 AND 2022 (Currency
expressed in United States Dollars (“US$”), except for number of shares) (UNAUDITED) Income
taxes Income
taxes are determined in accordance with the provisions of ASC Topic 740, “ Income Taxes ASC
740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements
uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the
financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax
positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood Going
Concern The
accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement
of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements, for the period
ended March 31, 2023, the Company suffered net loss of $ 46,928 603,084 107,684 $ 9,476 .
These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that
the financial statements are issued. The financial statements do not include any adjustments that might be necessary if the Company is
unable to continue as a going concern. The
Company’s ability to continue as a going concern is dependent upon improving its profitability and the continuing financial support
from its shareholders. Management believes the existing shareholders or external financing will provide the additional cash to meet the
Company’s obligations as they become due. No assurance can be given that any future financing, if needed, will be available or,
if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing,
if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its
stockholders, in the case of equity financing. JOCOM
HOLDINGS CORP. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR
THE THREE MONTHS ENDED MARCH 31, 2023 AND 2022 (Currency
expressed in United States Dollars (“US$”), except for number of shares) (UNAUDITED) Net
loss per share The
Company calculates net income/(loss) per share in accordance with ASC Topic 260, “Earnings per Share.” Foreign
currencies translation The
reporting and functional currency of the Company and its subsidiaries in Labuan is United States Dollars (“US$”) which being
the primary currency of the economic environment in which these entities operate. Transactions
denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing
at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated
into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded
in the statements of operations. Translation
of amounts from RM into US$1 has been made at the following exchange rates for the respective periods: SCHEDULE
OF EXCHANGE RATES
As
of and for the three months ended March
31, 2023 As
of and for the twelve months ended December 31, 2022
Period-end RM : US$1 exchange
rate 4.417 4.390
Period-average RM : US$1 exchange rate 4.396 4.278
Exchange rate 4.396 4.278 Related
parties Parties,
which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control
the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also
considered to be related if they are subject to common control or common significant influence. JOCOM
HOLDINGS CORP. NOTES
TO CONDENSED FINANCIAL STATEMENTS FOR
THE THREE MONTHS ENDED MARCH 31, 2023 AND 2022 (Currency
expressed in United States Dollars (“US$”), except for number of shares) (UNAUDITED) Fair
value of financial instruments The
carrying value of the Company’s financial instruments: cash and cash equivalents, prepayment, deposits, accounts payable and accrued
liabilities approximate at their fair values because of the short-term nature of these financial instruments. The
Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”),
with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy
that prioritizes the inputs used in measuring fair value as follows: Level
1 Level
2 Level
3: Recent
accounting pronouncements The Company has reviewed
all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements
may be expected to cause a material impact on its financial condition or the results of its operations. In
May 2019, the FASB issued 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 amendments
in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification.
The amendments in this Update address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option
for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase
comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets.
Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13
while still providing financial statement users with decision-useful information. In November 2019, the FASB issued ASU No. 2019-10,
which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting
companies applying for credit losses, leases, and hedging standard. The new effective date for these preparers is for fiscal years beginning
after December 15, 2022. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023
as the Company is qualified as a smaller reporting company. The Company is currently evaluating the impact ASU 2019-05 may have on its
consolidated financial statements. JOCOM
HOLDINGS CORP. NOTES
TO CONDENSED FINANCIAL STATEMENTS FOR
THE THREE MONTHS ENDED MARCH 31, 2023 AND 2022 (Currency
expressed in United States Dollars (“US$”), except for number of shares) (UNAUDITED) |
