Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 130

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 19
Chunk 130
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 Non-lease components include payments for building management, utilities and property tax. It separates the non-lease components
from the lease components to which they relate.

The
Group evaluates the impairment of its right-of-use assets consistent with the approach applied for its other long-lived assets. The Group
reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value
of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the
asset from the expected undiscounted future pre-tax cash flows of the related operations. The Group has elected to include the carrying
amount of finance and operating lease liabilities in any tested asset group and include the associated lease payments in the undiscounted
future pre-tax cash flows. For the years ended December 31, 2024, 2023 and 2022, the Group did not have any impairment loss against its
operating lease right-of-use assets.

MAGIC
EMPIRE GLOBAL LIMITEDNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

  SUMMARY                                     
  OF SIGNIFICANT ACCOUNTING POLICIES (cont.)  
 ──────────────────────────────────────────────

Fair
value of financial instruments

ASC
825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize
the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as
follows:

Level
1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level
2 - Other inputs that are directly or indirectly observable in the marketplace.

Level
3 - Unobservable inputs which are supported by little or no market activity.

The
carrying amounts of cash, accounts receivable, interest receivables, other receivables from related parties, other payables to related
parties, and accruals and other payables approximate their fair values because of their generally short maturities.

During
the year ended December 31, 2024, the Group has new investment of HK$ 8,500,000 1,094,275 48,253,