Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 781

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 781
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 party transactions.

    F-18

Comprehensive
Income (Loss)

Other
comprehensive income (loss) refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included
in comprehensive income but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders’
equity. Our other comprehensive loss for the years ended September 30, 2024 and 2023 was comprised of foreign currency translation adjustments.

Revenue
Recognition

Revenue
is comprised of sales of goods and represents the amount of consideration the Company is entitled to upon the transfer of goods. Pursuant
to FASB ASU No. 2016-08, Revenue from Contracts with Customers (TOPIC 606): Principal versus Agent Considerations (Reporting Revenue
Gross versus Net), the Company recorded revenue on a gross basis, net of surcharges and value added tax (“VAT”) of gross
sales. The Company recorded revenue on a gross basis because the Company is the primary obligor of the sales arrangements has latitude
in establishing prices, has discretion in suppliers’ selection and assumes credit risks on receivables on gross sales from customers.

The
Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU
2014-09”) using the full retrospective transition method. The Company’s adoption of ASU 2014-09 did not have a material impact
on the amount and timing of revenue recognized in its consolidated financial statements.

The
Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its
obligations under each of its agreements:

    ●
    
    identify
    the contract with a customer;

    ●
    
    identify
    the performance obligations in the contract;

    ●
    
    determine
    the transaction price;

    ●
    
    allocate
    the transaction price to performance obligations in the contract; and

    ●
    
    recognize
    revenue as the performance obligation is satisfied.

Consistent
with the criteria of ASC 606 “Revenue from Contracts with Customers,” we recognize revenue when performance obligations are
satisfied by transferring control of a promised good or service to a customer. For performance obligations that are satisfied at a point
in time, we also consider the following indicators to assess whether control of a promised good or service is transferred to the customer:
(i) right to payment,