Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 98

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 19
Chunk 98
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 and other investees, according to ASC 323 “ Investments
 - Equity Method and Joint Ventures”, over which it has significant influence but does not own a controlling financial interest.

Under
the equity method, the Company’s share of the post-acquisition profits or losses of the equity investee is recognized in the consolidated
statements of operations and comprehensive income (loss). The Company records its share of the results of the equity investees on a one
quarter in arrears basis. The excess of the carrying amount of the investment over the underlying equity in net assets of the equity
investee generally represents goodwill and intangible assets acquired. When the Company’s share of losses of the equity investee
equals or exceeds its interest in the equity investee, the Company does not recognize further losses, unless the Company has incurred
obligations or made payments or guarantees on behalf of the equity investee.

The Company continually reviews
its investments in equity investees to determine whether a decline in fair value below the carrying value is other-than-temporary. The
primary factors the Company considers in its determination include the financial condition, operating performance and the prospects of
the equity investee; other company specific information such as recent financing rounds; the geographic region, market and industry in
which the equity investee operates; and the length of time that the fair value of the investment is below its carrying value. If the decline
in fair value is deemed to be other-than-temporary, the carrying value of the equity investee is written down to fair value. Impairment of$256,420, $ niland $ nilwas recognized for the years ended March 31, 2025, 2024, and 2023.

  Investment in the privately  

Equity
securities not accounted for using the equity method are carried at fair value with unrealized gains and losses recorded in the consolidated
income statements, according to ASC 321, Investments - Equity Securities

Equity
investments in privately held companies accounted for using the measurement alternative are subject to periodic impairment reviews. The
Company’s impairment analysis considers both qualitative and quantitative factors that may have a significant effect on the fair
value of these equity securities. In computing realized gains and losses on equity securities, the Company determines cost based on amounts
paid using the average cost method. Dividend income is recognized when the right to receive payment is established.

F-11

TOP
Financial Group Limited

Notes
to Consolidated Financial Statements

For
the Years Ended March