{"url_path":"/sec/ncew/10-k/2026/item-5","section_key":"item-5","section_title":"Item 5 A “operating results” above for our trend information.","topic":"sec","document":{"doc_type":"20-F/A","doc_date":"2026-06-08","source_url":"https://www.sec.gov/Archives/edgar/data/1968043/0001493152-26-027632-index.html","accession_number":"0001493152-26-027632","cik":"0001968043","ticker":"NCEW","issuer_name":"New Century Logistics (BVI) Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1968043/0001493152-26-027632-index.html","primary_entity_key":"0001968043","primary_entity_name":"New Century Logistics (BVI) Ltd"},"word_count":477,"has_tables":true,"body_markdown":"ITEM 5.A “operating results” above for our trend information.\n\n \n\n**E.\nCritical Accounting Estimates**\n\n \n\nWe prepare our consolidated\nfinancial statements in accordance with U.S. GAAP. These accounting principles require us to make judgments, estimates and\nassumptions on the reported amounts of assets and liabilities at the end of each fiscal period, and the reported amounts of revenues\nand expenses during each fiscal period.\n\n \n\nWe continually\nevaluate these judgments and estimates based on our own historical experience, knowledge and assessment of current business and\nother conditions, our expectations regarding the future based on available information, which together form our basis for making\njudgments about matters that are not readily apparent from other sources. Since the use of estimates is an integral component of the\nfinancial reporting process, our actual results could differ from those estimates.\n\n \n\nSome of our accounting policies\nrequire a higher degree of judgment than others in their application.\n\n \n\nCritical accounting policies\n\n \n\nWhen reading our consolidated\nfinancial statements, you should consider our selection of critical accounting policies, including revenue recognition, accounts receivable,\nand income taxes, of which the details are set out in our consolidated financial statements.\n\n \n\n**Recently Accounting Pronouncements**\n\n \n\nSee the discussion of the recent\naccounting pronouncements contained in Note 2 to the consolidated financial statements, “Summary of Significant Accounting Policies”.\n\n \n\nCritical accounting estimates\n\n \n\nYou should\nalso consider the judgment and other uncertainties affecting the application of such policies and the sensitivity of reported results\nto changes in conditions and assumptions. We believe the following accounting policies involve the most significant judgments and estimates\nused in the preparation of our consolidated financial statements.\n\n \n\n**Allowance for credit loss –\naccounts receivable**\n\n** **\n\nIn establishing an allowance for\ncredit losses, we use reasonable and supportable information, which is based on historical collection experience, the financial condition\nof our customers and assumptions for the future movement of different economic drivers and how these drivers will affect each other. Loss-rate\napproach is based on the historical loss rates and expectations of future conditions.\n\n \n\n**Revenue recognition**\n\n** **\n\nOur transportation transactions\nprovide for the arrangement of the movement of freight to a customer’s destination. These performance obligations are satisfied\nand recognized in revenue upon the transfer of control of the services over the requisite transit period as the customer’s goods\nmove from origin to destination. We determine the period to recognize revenue in transit based upon the departure date and the delivery\ndate, which may be estimated if delivery has not occurred as of the reporting date. Determination of the transit period and the percentage\nof completion of the shipment as of the reporting date requires us to make judgments that affect the timing of revenue recognition. We\nhave determined that revenue recognition over the transit period provides a reasonable estimate of the transfer of services to our customers\nas it depicts the pattern of our performance under the contracts with its customers.\n\n \n\n86"}