Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 134

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 19
Chunk 134
---
 Group will
recognize the revenue of the discretionary bonus at each reporting date when the uncertainty is resolved. During the year ended
December 31, 2023, the Group received HK$ 1,500,000

  IFA                                                                                                                                  

The
Group enters a distinct contract with its clients for the provision of IFA services. The Group’s IFA services include (i) conducting
reviews and analyses on the proposed transactions and assessing the fairness and reasonableness of the terms of the proposed transactions;
(ii) issuing our opinion, in the form of an IFA letter, to the independent board committee and/or independent shareholders of listed
issuers with voting recommendations, which are incorporated in the circulars pursuant to the Listing Rules, the GEM Listing Rules and
the Takeovers Code; and (iii) obtaining the necessary clearance in relation to our opinion letters from the Stock Exchange and/or the
SFC.

MAGIC
EMPIRE GLOBAL LIMITEDNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

The
entire service fee from clients is non-refundable and the Group is entitled to receive upfront payment upon signing the contract. As
the IFA services involve a series of tasks which are interrelated and are not separable or distinct as the Group’s clients cannot
benefit from any standalone task, the Group concludes that the IFA services to be accounted for as a single performance obligation. The
entire transaction prices of IFA services are allocated to a single performance obligation and the fees received upon signing the contract
and upon issuance of circular which contains IFA letter, is recognized at the point the issue of circular on the Stock Exchange because
it is the time that the scope of work for acting as an IFA such as carrying out due diligence, preparation of IFA letter to independent
board committee and independent shareholders, and replying to queries from the Stock Exchange and/or the SFC are completed. For projects
which are terminated or lapsed at expiry of contracts, the revenue from the upfront fee is recognized at the time of termination or lapse
of contracts.

  FA                                                                                                                                       

The
Group enters a distinct contract with its clients for the provision of FA services. The scope of work under FA services can vary from
project to project and generally involves a series of tasks which are interrelated and are not separable or distinct as the Group’s