Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 143

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 19
Chunk 143
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 the sum of the consideration received and any cumulative gain or
loss that had been recognized in other comprehensive income for debts instruments is recognized in profit or loss.

Financial
liabilities

Initial
recognition and measurement

Financial
liabilities are recognized when, and only when, the Group becomes a party to the contractual provisions of the financial instrument.
The Group determines the classification of its financial liabilities at initial recognition.

All
financial liabilities are recognized initially at fair value plus in the case of financial liabilities not at FVPL, net of directly attributable
transaction costs.

MAGNITUDE
INTERNATIONAL LTD AND ITS SUBSIDIARIES

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

  2.8      Financial                

Financial
liabilities

Subsequent
measurement

After
initial recognition, financial liabilities that are not carried at FVPL are subsequently measured at amortized cost using the effective
interest method. Gains and losses are recognized in profit or loss when the liabilities are derecognized, and through the amortization
process.

Derecognition

A
financial liability is derecognized when the obligation under the liability is discharged or cancelled or expired. On derecognition,
the difference between the carrying amounts and the consideration paid is recognized in profit or loss.

  2.9      Impairment           

The
Group recognizes an allowance for expected credit losses (“ ECLs”) for all debt instruments not held at FVPL. ECLs are based
on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects
to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from
the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs
are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition,
ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a “12-month ECL”).
For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance
is recognized for credit losses expected over the remaining life of the exposure, irrespective of timing of the default (a “lifetime
ECL”).

For
trade