Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 21

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 3
Chunk 21
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, valuation of accruals
for expenses, and tax due.

Earnings
(Loss) Per Share

Basic
income (loss) per share is computed by dividing net income (loss) attributable to the holders of ordinary shares by the weighted average
number of ordinary shares outstanding during the year. Diluted income (loss) per share is calculated by dividing net income (loss) attributable
to the holders of ordinary shares as adjusted for the effect of dilutive ordinary share equivalents, if any, by the weighted average
number of ordinary shares and dilutive ordinary share equivalents outstanding during the period. However, ordinary share equivalents
are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive,
such as in a period in which a net loss is recorded.

Non-controlling interests

For the Company’s non-wholly owned subsidiaries, a non-controlling interest is recognized to reflect portion
of equity that is not attributable, directly or indirectly, to the Company. The cumulative results of operations attributable to non-controlling
interests are also recorded as non-controlling interests in the Company’s consolidated balance sheets and consolidated statements
of operations and comprehensive income (loss). Cash flows related to transactions with non-controlling interests are presented under financing
activities in the consolidated statements of cash flows.

Foreign
Currency Translation

The
reporting currency of the Company is the U.S. Dollar. Our entity in the British Virgin Islands uses the U.S. dollar. Our entities in
the PRC and Hong Kong use the local currencies, Renminbi (RMB) and Hong Kong Dollar (HKD), as their functional currencies as determined
based on the criteria of ASC 830, “Foreign Currency Translation.” Assets and liabilities are translated at the unified exchange
rate as quoted by www.xe.com at the end of the period. Income and expense accounts are translated at the average translation rates and
the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated
other comprehensive income in the statement of equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions
denominated in a currency other than the functional currency are included in the results of operations as incurred. Translation adjustments
included in accumulated other comprehensive gain amounted to $200,368  and $426,741 for
the years ended September 30, 2024 and 2023, respectively.

88

Below
is a table with foreign exchange rates used for translation:

    For