| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis
of presentation The
consolidated financial statements for Simson Wellness Tech. Corp. and its subsidiaries for the period ended March 2022 are prepared in
accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts
of Simson Wellness Tech. Corp. and Simson Wellness Sdn. Bhd. 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. All inter-company accounts and transactions
have been eliminated upon consolidation. 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. Intangible
assets The
Company follows ASC 360 in accounting for intangible assets, which requires impairment losses to be recorded when indicators of impairment
are present and the undiscounted cash flows estimated to be generated by the assets are less than the assets’ carrying amounts.
For the period ended March 31, the Company determined there were no indicators of impairment of intangible assets. The
amortization is provided on straight line method so as to write off the amortization amount of the respective classes of intangible assets
as follows: SCHEDULE
OF AMORTIZATION STRAIGHT LINE METHOD
Rate %
Intangible asset 20 % The
amortization commences when the intangible asset is available and ready for use. At
the end of each reporting period, the residual values, useful lives and amortization methods for the intangible assets are reviewed for
reasonableness. Any change in estimate of an intangible asset to be adjusted prospectively over its remaining useful life, commencing
in the current period. 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. 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 of
being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. 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, 2022, the Company suffered operating losses of $ 24,285 107,856 .
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
stock holders, in the case of equity financing. Revenue
recognition Revenue
recognized when it is probable that the economic benefits associated with the transaction will flow to the enterprise and the amount
of the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or receivable.
a. The
Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts, ASC 606 creates a five-step
model that requires entities to exercise judgment when considering the terms of contracts, which includes
i) Identifying
the contracts or agreements with a customer,
ii) Identifying
our performance obligations in the contract or agreement,
iii) Determining
the transaction price,
iv) Allocating
the transaction price to the separate performance obligations, and
v) Recognizing
revenue as each performance obligation is satisfied. The
Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled
to in exchange for the services it transfers to its clients.
b. Interest
income Interest
is recognized on receipt basis. Net
income/(loss) per share The
Company calculates net income/(loss) per share in accordance with ASC Topic 260, “Earnings per Share.” Trade
receivables Trade
receivables are recorded at the invoiced amount and do not bear interest. Management reviews the adequacy of the allowance for doubtful
accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual
customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it
is considered necessary. Trade balances are charged off against the allowance after all means of collection have been exhausted and the
potential for recovery is considered remote. 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 (“MYR”) 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 MYR into US$1 has been made at the following exchange rates for the respective periods: SCHEDULE
OF FOREIGN EXCHANGE RATES
As
of and for As
of and for As
of and for As
of and for
March
31, 2022 March
31, 2021 December
31, 2021 December
31, 2020
Year/Period-end
MYR : US$1 exchange rate 4.2060 4.1460 4.1650 4.0170
Year/Period-average
MYR : US$1 exchange rate 4.1936 4.0678 4.1456 4.2011
Year/Period-end
MYR : SGD 1 exchange rate 3.1064 3.0845 3.0853 3.0396
Year/Period-average
MYR : SGD 1 exchange rate 3.1003 3.0530 3.0842 3.0462
Year/Period-end
MYR : HKD 1 exchange rate 0.5372 0.5333 0.5342 0.5182
Year/Period-average
MYR : HKD 1 exchange rate 0.5372 0.5243 0.5333 0.5417
Year/Period-end
MYR : CNY 1 exchange rate 0.6630 0.6326 0.6547 0.6141
Year/Period-average
MYR : CNY 1 exchange rate 0.6606 0.6277 0.6428 0.6091 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. Fair
value of financial instruments The
carrying value of the Company’s financial instruments: cash and cash equivalents, account receivables, other receivables, accrued liabilities and other payables 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. FASB
issues various Accounting Standards Updates relating to the treatment and recording of certain accounting transactions. On June 10, 2014,
the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-10, Development Stage Entities (Topic 915)
Elimination of Certain Financial Reporting Requirements, including an Amendment to Variable Interest Entities Guidance in Topic 810,
Consolidation, which eliminates the concept of a development stage entity (DSE) entirely from current accounting guidance. The Company
has elected adoption of this standard, which eliminates the designation of DSEs and the requirement to disclose results of operations
and cash flows since inception. | 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis
of presentation The
consolidated financial statements for Simson Wellness Tech. Corp. and its subsidiaries for the period ended June 30, 2022 are prepared
in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts
of Simson Wellness Tech. Corp. and Simson Wellness Sdn. Bhd. 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. All inter-company accounts and transactions
have been eliminated upon consolidation. 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. Intangible
assets The
Company follows ASC 360 in accounting for intangible assets, which requires impairment losses to be recorded when indicators of impairment
are present and the undiscounted cash flows estimated to be generated by the assets are less than the assets’ carrying amounts.
For the period ended June 30, 2022, the Company determined there were no indicators of impairment of intangible assets. The
amortization is provided on straight line method so as to write off the amortization amount of the respective classes of intangible assets
as follows: SCHEDULE
OF AMORTIZATION STRAIGHT LINE METHOD
Rate
%
Intangible asset 20 % The
amortization commences when the intangible asset is available and ready for use. At
the end of each reporting period, the residual values, useful lives and amortization methods for the intangible assets are reviewed for
reasonableness. Any change in estimate of an intangible asset to be adjusted prospectively over its remaining useful life, commencing
in the current period. 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. 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 of
being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. 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 June 30, 2022, the Company suffered operating losses of $ 1,785 109,278 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. Revenue
recognition Revenue
recognized when it is probable that the economic benefits associated with the transaction will flow to the enterprise and the amount
of the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or receivable.
a. The
Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts, ASC 606 creates a five-step
model that requires entities to exercise judgment when considering the terms of contracts, which includes
i) Identifying
the contracts or agreements with a customer,
ii) Identifying
our performance obligations in the contract or agreement,
iii) Determining
the transaction price,
iv) Allocating
the transaction price to the separate performance obligations, and
v) Recognizing
revenue as each performance obligation is satisfied. The
Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled
to in exchange for the services it transfers to its clients.
b. Interest
income Interest
is recognized on receipt basis. Net
income/(loss) per share The
Company calculates net income/(loss) per share in accordance with ASC Topic 260, “Earnings per Share.” Trade
receivables Trade
receivables are recorded at the invoiced amount and do not bear interest. Management reviews the adequacy of the allowance for doubtful
accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual
customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it
is considered necessary. Trade balances are charged off against the allowance after all means of collection have been exhausted and the
potential for recovery is considered remote. 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 (“MYR”) 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 MYR into US$1 has been made at the following exchange rates for the respective periods: SCHEDULE
OF FOREIGN EXCHANGE RATES
For the
three months ended For
the
three months ended As
of and for the
period ended June
30, As
of and for the
period ended
Year/Period-end MYR : US$1 exchange
rate 4.4080 4.1520 4.4080 4.1520
Year/Period-average MYR : US$1 exchange
rate 4.3533 4.1285 4.2728 4.0981
Year/Period-end MYR : SGD 1 exchange rate 3.1697 3.0873 3.1697 3.0873
Year/Period-average MYR : SGD 1 exchange
rate 3.1611 3.0970 3.1304 3.0749
Year/Period-end MYR : HKD 1 exchange rate 0.5618 0.5347 0.5618 0.5347
Year/Period-average MYR : HKD 1 exchange
rate 0.5548 0.5316 0.5459 0.5279
Year/Period-end MYR : CNY 1 exchange rate 0.6428 0.6428 0.6428 0.6428
Year/Period-average MYR : CNY 1 exchange
rate 0.6584 0.6390 0.6595 0.6334 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. Fair
value of financial instruments The
carrying value of the Company’s financial instruments: cash and cash equivalents, other receivables, accrued liabilities and other
payables 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. FASB
issues various Accounting Standards Updates relating to the treatment and recording of certain accounting transactions. On June 10, 2014,
the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-10, Development Stage Entities Consolidation | 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis
of presentation The
consolidated financial statements for Simson Wellness Tech. Corp. and its subsidiaries for the year ended December 31,2020 and 31 December
2021 are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”)
and include the accounts of Simson Wellness Tech. Corp. and Simson Wellness Sdn. Bhd. intercompany accounts and transactions have been
eliminated on consolidation. The Company has adopted Dec 31 as its fiscal year end. Basis
of consolidation The
consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company accounts and transactions
have been eliminated upon consolidation. 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. Intangible
assets The
Company follows ASC 360 in accounting for intangible assets, which requires impairment losses to be recorded when indicators of impairment
are present and the undiscounted cash flows estimated to be generated by the assets are less than the assets’ carrying amounts.
For the years ended December 31, the Company determined there were no indicators of impairment of intangible assets. The
amortization is provided on straight line method so as to write off the amortization amount of the respective classes of intangible assets
as follows: SCHEDULE
OF AMORTIZATION STRAIGHT LINE METHOD
Rate %
Intangible asset 20 % The
amortization commences when the intangible asset is available and ready for use. At
the end of each reporting period, the residual values, useful lives and amortization methods for the intangible assets are reviewed for
reasonableness. Any change in estimate of the intangible assets to be adjusted prospectively over its remaining useful
life, commencing in the current period. 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. 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 of
being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. 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, 2021, the Company suffered operating losses of $ 60,484 83,638 .
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
stock holders, in the case of equity financing. Revenue
recognition Revenue
recognized when it is probable that the economic benefits associated with the transaction will flow to the enterprise and the amount
of the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or receivable.
a. The
Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts, ASC 606 creates a five-step
model that requires entities to exercise judgment when considering the terms of contracts, which includes
i) Identifying
the contracts or agreements with a customer,
ii) Identifying
our performance obligations in the contract or agreement,
iii) Determining
the transaction price,
iv) Allocating
the transaction price to the separate performance obligations, and
v) Recognizing
revenue as each performance obligation is satisfied. The
Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled
to in exchange for the services it transfers to its clients.
b. Interest
income Interest
is recognized on receipt basis. Net
income/(loss) per share The
Company calculates net income/(loss) per share in accordance with ASC Topic 260, “Earnings per Share.” Trade
receivables Trade
receivables are recorded at the invoiced amount and do not bear interest. Management reviews the adequacy of the allowance for doubtful
accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual
customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it
is considered necessary. Trade balances are charged off against the allowance after all means of collection have been exhausted and the
potential for recovery is considered remote. 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 (“MYR”) 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 MYR into US$1 has been made at the following exchange rates for the respective periods: SCHEDULE
OF FOREIGN EXCHANGE RATES
As of and for the As of and for the period ended
December 31, 2021 December 31, 2020
Year/Period-end MYR : US$1 exchange rate 4.1650 4.0170
Year/Period-average MYR : US$1 exchange rate 4.1456 4.2011
Year/Period-end MYR : SGD 1 exchange rate 3.0853 3.0396
Year/Period-average MYR : SGD 1 exchange rate 3.0842 3.0462
Year/Period-end MYR : HKD 1 exchange rate 0.5342 0.5182
Year/Period-average MYR : HKD 1 exchange rate 0.5333 0.5417
Year/Period-end MYR : CNY 1 exchange rate 0.6547 0.6141
Year/Period-average MYR : CNY 1 exchange rate 0.6428 0.6091 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. Fair
value of financial instruments The
carrying value of the Company’s financial instruments: cash and cash equivalents, account receivables, other receivables, accounts
payables, accrued liabilities and other payables 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. FASB
issues various Accounting Standards Updates relating to the treatment and recording of certain accounting transactions. On June 10, 2014,
the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-10, Development Stage Entities (Topic 915)
Elimination of Certain Financial Reporting Requirements, including an Amendment to Variable Interest Entities Guidance in Topic 810,
Consolidation, which eliminates the concept of a development stage entity (DSE) entirely from current accounting guidance. The Company
has elected adoption of this standard, which eliminates the designation of DSEs and the requirement to disclose results of operations
and cash flows since inception. |
