Company: GRAN
Filing Date: 2025-07-01
Form Type: 424B4
Source: 0001213900-25-060039
Chunk: 254

Company: Grande Group Ltd/HK
Filing Date: 2025-07-01
Form: 424B4
Chunk 254
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 the services period. The customer only receives the benefits when the Company completes all of its services. The independent financial advisory services also do not meet criterion ASC 606 -10-25-27(b) because there is no asset controlled by the customers during the period. The agreements do not have a right to payment clause. The initial deposit normally only represents 39% in average of the total contract price and so it is not sufficient to cover the Company’s estimated costs incurred during the period before the next milestone instalments as specified in the service agreements. Consequently, the Company does not have an enforceable right to payment for its performance completed to date under these agreements and thus criterion ASC 606 -10-25-27(c) is not met. As a result, the services fee income is recognized at the point in time when the Company completes its independent financial advisory services. Compliance advisory services The Company enters into an agreement with its customers for compliance advisory services mainly include advisory works to listed companies in Hong Kong in relation to post -listingcompliance matters, in return for a monthly fee. The services carried out by the Company can vary from project to project and generally involves a series of tasks which are usually highly interdependent and interrelated and are not separable or distinct as the Company’s customers cannot benefit from any standalone task and therefore, in accordance with ASC 606 -10-25-21(c) and ASC 606 -10-25-19(b), the Company accounts for all of the compliance advisory services promised in the contract as a single performance obligation. Following the fact pattern provided, the compliance advisory services meet criterion ASC 606 -10-25-27(a) because the customer simultaneously receives and consumes the benefits provided by the Company’s performance during the services period, i.e. ongoing advisory services. Also, the Company concludes that the services provided each month are substantially similar and result in the transfer of substantially similar services to the customers each month. That is, the benefit consumed by the customers is substantially similar each month, even though the exact volume of services may vary. As a result, the Company recognizes revenues from compliance advisory services on a monthly basis when it satisfies its performance obligations throughout the contract terms. Contract liabilities The Company generally requires the customers to make initial deposits upon entering into the service contracts and progressive payments throughout the contract terms before the completion of services. Contract liabilities are recorded for any payments received on such yet to be completed performance obligations.

F-14

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (