Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 138

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 19
Chunk 138
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 has control. The Group controls an entity when the Group is exposed
to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power
over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated
from the date on that control ceases.

In
preparing the consolidated financial statements, transactions, balances and unrealized gains on transactions between group entities are
eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment indicator of the transferred
asset. Accounting policies of subsidiaries have been changed, where necessary, to ensure consistency with the policies adopted by the
Group.

Non-controlling
interests comprise the portion of a subsidiary’s net results of operations and its net assets, which is attributable to the interests
that are not owned directly or indirectly by the equity holders of the Company. They are shown separately in the consolidated statements
of profit or loss and other comprehensive income, statements of changes in equity, and statements of financial position. Total comprehensive
income is attributed to the non-controlling interests based on their respective interests in a subsidiary, even if this results in the
non-controlling interests having a deficit balance.

MAGNITUDE
INTERNATIONAL LTD AND ITS SUBSIDIARIES

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

  Material                                   
  accounting policy information (Continued)  
 ─────────────────────────────────────────────

  2.3      Basis                         

Common
control

Acquisition
of entities under an internal reorganization scheme does not result in any change in economic substance. Accordingly, the consolidated
financial statements of the Group are a continuation of the acquired entities and is accounted for as follows:

  The                                                                                                                                   
  The                                                                                                                                   
  No                                                                                                                                    

Acquisition

The
acquisition method of accounting is used to account for business combinations entered by the Group.

The
consideration transferred for the acquisition of a subsidiary or business comprises the fair value of the assets transferred, the liabilities
incurred and the equity interests issued by the Group. The consideration transferred also includes any contingent consideration arrangement
and any pre-existing equity interest in the subsidiary measured at their fair values at the acquisition date.

Acquisition-related
costs are expensed as incurred.

Identifiable
assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially
at their fair values