Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 195

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 6
Chunk 195
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 one or more of the transacting parties might
be prevented from fully pursuing its own separate interests.

The
consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements,
expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated
in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include:
a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal
amounts were ascribed, for each of the periods for which income statements are presented; and c) such other information deemed necessary
to an understanding of the nature of the related party transactions.

    F-18

Comprehensive
Income (Loss)

Other
comprehensive income (loss) refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included
in comprehensive income but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders’
equity. Our other comprehensive loss for the years ended September 30, 2024 and 2023 was comprised of foreign currency translation adjustments.

Revenue
Recognition

Revenue
is comprised of sales of goods and represents the amount of consideration the Company is entitled to upon the transfer of goods. Pursuant
to FASB ASU No. 2016-08, Revenue from Contracts with Customers (TOPIC 606): Principal versus Agent Considerations (Reporting Revenue
Gross versus Net), the Company recorded revenue on a gross basis, net of surcharges and value added tax (“VAT”) of gross
sales. The Company recorded revenue on a gross basis because the Company is the primary obligor of the sales arrangements has latitude
in establishing prices, has discretion in suppliers’ selection and assumes credit risks on receivables on gross sales from customers.

The
Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU
2014-09”) using the full retrospective transition method. The Company’s adoption of ASU 2014-09 did not have a material impact
on the amount and timing of revenue recognized in its consolidated financial statements.

The
Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its
obligations under each of its agreements:

    ●
    
    identify
    the