| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The
accompanying consolidated financial statements reflect the application of certain significant accounting policies as described in this
note and elsewhere in the accompanying consolidated financial statements and notes. 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 year
ended December 31, 2023, the Company incurred a net loss of $ 156,891 713,047 137,147 115,318 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
stock holders, in the case of equity financing. Basis
of presentation The
consolidated financial statements for Jocom Holdings Corp. and its subsidiaries for the year ended December 31, 2023 is 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 subsidiaries, Jocom Holdings Corp. Intercompany accounts and transactions have been eliminated on
consolidation. The Company has adopted December 31 as its fiscal year end. Basis
of consolidation The
consolidated financial statements include the accounts of the Company and its subsidiaries in which the Company is the primary beneficiary.
All inter-company accounts and transactions have been eliminated upon consolidation. JOCOM
HOLDINGS CORP. NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS FOR
THE YEAR ENDED DECEMBER 31, 2023 AND 2022 (Currency
expressed in United States Dollars (“US$”), except for number of shares) 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 year reported. Actual results may differ from these estimates. 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. Cost
of revenue Cost
of revenue includes the cost of services and product in providing business mentoring, nurturing, incubating and corporate development
advisory services 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 Income
taxes The
provision of income taxes is determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”).
Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between
the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities
are measured using enacted income tax rates expected to apply to taxable income in the year in which those temporary differences are
expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income
in the year that includes the enactment date. 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 JOCOM
HOLDINGS CORP. NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS FOR
YEAR ENDED DECEMBER 31, 2023 AND 2022 (Currency
expressed in United States Dollars (“US$”), except for number of shares) Net
loss per share The
Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Foreign
currencies translation 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. The
reporting currency of the Company is United States Dollars (“US$”). The Company’s subsidiary in Labuan maintains its
books and record in United States Dollars (“US$”) respectively, and Ringgits Malaysia (“RM”) is functional currency
as being the primary currency of the economic environment in which the entity operates. In
general, for consolidation purposes, assets and liabilities of its subsidiary whose functional currency is not the US$ are translated
into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement Translation
of amounts from RM into US$1 has been made at the following exchange rates for the respective years: SCHEDULE
OF EXCHANGE RATES
2023 2022
As of and for the year ended December 31,
2023 2022
Year-end RM: US$1 exchange rate 4.589 4.390
Year-average RM: US$1 exchange rate 4.561 4.278 Related
parties Parties,
which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control
the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also
considered to be related if they are subject to common control or common significant influence. JOCOM
HOLDINGS CORP. NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS FOR
THE YEAR ENDED DECEMBER 31, 2023 AND 2022 (Currency
expressed in United States Dollars (“US$”), except for number of shares) 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 and amount due to a director 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: Leases Effective
November 1, 2019, the Company adopted the guidance of ASC 842, Leases, Recently
Issued Accounting Standards 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 has accordingly adopted ASUs 2016-13 and 2019-05 in the preparation of
its unaudited condensed consolidated financial statements. Credit loss rate is determined by historical collection based on aging schedule,
adjusted for current conditions using reasonable and supportable forecasts. Based on the aging categorization and the adjusted loss rate
per category, an allowance for credit losses is calculated by multiplying the adjusted loss rate with the amortized cost in the respective
age category. Other
recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public
Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s
present or future financial statements. JOCOM
HOLDINGS CORP. NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS FOR
THE YEAR ENDED DECEMBER 31, 2023 AND 2022 (Currency
expressed in United States Dollars (“US$”), except for number of shares) |
