Company: GRAN
Filing Date: 2025-03-14
Form Type: F-1/A
Source: 0001213900-25-023979
Chunk: 256

Company: Grande Group Ltd/HK
Filing Date: 2025-03-14
Form: F-1/A
Chunk 256
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. Following the fact pattern provided, the general advisory services does not meet criterion ASC 606 -10-25-27(a) because the customer does not simultaneously receive and consume the benefits provided by the Company’s performance during the services period. The customer only receives the benefits when the Company completes all of its services. The general 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 general advisory services. Independent financial advisory services The Company enters into an agreement with its customers for independent financial advisory services mainly include providing advice to the independent board committee and independent shareholders of companies listed on the Hong Kong Exchange rendering recommendation and opinions.

F-13

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) The Company charged a fixed fee payable by progress payment based on achievement of certain milestones as specified in the service agreements with an initial deposit of 39% in average. 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 independent financial advisory services promised in the contract as a single performance obligation. Following the fact pattern provided, the independent financial advisory services does not meet criterion ASC 606 -10-25-27(a) because the customer does not simultaneously receive and consume the benefits provided by the Company’s performance during 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