Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 76

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 5
Chunk 76
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 include the following: (i) revenue recognition; and (ii) long-term investment. See Note
2 - Summary of Significant Accounting Policies to our consolidated financial statements for the disclosure of these accounting
policies. We believe the following accounting estimates involve the most significant judgments used in the preparation of our consolidated
financial statements.

Fair
value measurement and impairment on the investment accounted for using the measurement alternative

We
record equity investments without significant influence and readily determinable fair values and not accounted for under the equity method
at cost, less impairment, adjusted for subsequent observable price changes on a nonrecurring basis, and report changes in the carrying
value of the equity investment in current earnings. Changes in the carrying value of the equity investment are required to be made whenever
there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Reasonable efforts
shall be made to identify price changes that are known or that can reasonably be known. We assess the impairment on the investment accounted
for using the measurement alternative on a semi-annual basis, and the assumptions and judgement used in establishing the impairment are
evaluated regularly. When an event occurs or circumstances change that indicate the investment accounted for using the measurement alternative
may be impaired, we assess qualitative factors to determine whether the fair value of the investment is less than its carrying amount.
If the carrying value of the investment accounted for using the measurement alternative is above its fair value, an impairment loss is
recognized in an amount equal to the excess. For the year ended December 31, 2022, 2023 and 2024, the Group recorded impairment on
investment of nil, HK$1,963,000 and nil, respectively.

  51  

Recent
accounting pronouncements

See
the discussion of the recent accounting pronouncements contained in Note 2 to the consolidated financial statements, “ Summary of
Significant Accounting Policies”.

ITEM
6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES