Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 606

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 606
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 the balance sheet for cash, other receivables, accrued liabilities and other payables approximate fair value
because of the immediate or short-term maturities of these financial instruments.

    F-16

Property
and Equipment

Property
and equipment are stated at cost less accumulated depreciation and impairment losses. Gains and losses on dispositions of property and
equipment are included in operating income (loss). Major additions, renewals and improvements are capitalized, while maintenance and
repairs are recognized as expense as incurred.

Depreciation
is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method over the
useful lives of the assets are as follows:

 SCHEDULE OF PROPERTY PLANT AND EQUIPMENT USEFUL LIVES

    Classification
     
    Estimated
    useful
    life
  
    Leasehold
    improvements
     
    5
    years
  
    Office
    equipment
     
    3
    years
  
    Computer
    equipment
     
    3
    years
  
    Computer
    software
     
    5
    years

Intangible
Assets

Intangible
assets represent the licensing cost for the trademark registration. For intangible assets with indefinite lives, the Company evaluates
intangible assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying
value may not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the
carrying value exceeds the fair value. For intangible assets with definite lives, they are amortized over estimated useful lives, and
are reviewed annually for impairment. The Company has not recorded impairment of intangible assets as of September 30, 2024 and 2023.

Goodwill

Goodwill
represents the excess of the consideration paid of an acquisition over the fair value of the net identifiable assets of the acquired
subsidiaries at the date of acquisition. Goodwill is not amortized and is tested for impairment at least annually, more often when circumstances
indicate impairment may have occurred. Goodwill is carried at cost less accumulated impairment losses. If impairment exists, goodwill
is immediately written off to its fair value and the loss is recognized in the consolidated statements of operations and comprehensive
income (loss). Impairment losses on goodwill are not reversed.

The
amendments in ASU 2017-04 eliminate Step 2 of the goodwill impairment test. As