Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 102

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 19
Chunk 102
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 underlying financial instrument is identified, the pricing of brokerage
services is agreed upon and the promised services are delivered to customers. All of the Company’s revenues from contracts
with customers are recognized at a point in time. The futures brokerage service cannot be cancelled once it has been executed and is
not refundable, so returns and allowances are not applicable. Commissions are charged for each customer trade order executed and
cleared by the third-party brokers. The Company recognizes revenue on a gross basis as the Company is determined to be the primary
obligor in fulfilling the trade order initiated by the customer. The Company may offer volume rebate as a trading incentive to
certain customers. The Company will review the customer’s transaction volume monthly and provide volume rebates on the
commission charged to specific customers with large volume transactions. The volume rebate offered to such customers is accounted
for as a variable consideration and determined based on the most-likely amount method, which is recognized as a reduction of
revenues. For the years ended March 31, 2025, 2024 and 2023, the Company did not offer volume rebates, as no customer achieved the transaction volume threshold required
for eligibility.

F-14

TOP
Financial Group Limited

Notes
to Consolidated Financial Statements

For
the Years Ended March 31, 2025, 2024 and 2023

2.
Summary of Significant Accounting Policies (Continued)

Revenue
Recognition (continued)

  Revenue from Contracts      

Trading
solution services fees

The
Company provides trading solution services to customers (e. g. individuals, proprietary trading companies or brokerage companies) for
their trading on derivatives, equity, CFD and other financial products, through both internally and externally developed proprietary
investment management software. The Company’s trading solution provides a variety of functions suitable for front-end
transaction executions to back-office settlement operations. The Company implements the initial installation of such software for
each customer and provides hosting services for a period of time, generally two years, as agreed in the contracts. The initial
installation is considered as a set-up activity, rather than a promised service to customers, which provides no incremental benefit
to customers beyond permitting the access and use of the hosted application. The Company identifies a single performance obligation
from its contracts with customers. The Company charges each customer a fixed amount of initial installation fee and the monthly
service fee based on a fixed rate for each transaction executed on the platform with a minimum monthly fee required. The Company
recogn