Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 144

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 19
Chunk 144
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 receivables, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit
risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix
that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic
environment which could affect debtors’ ability to pay.

The
Group considers a financial asset in default when contractual payments are 60 days past due. However, in certain cases, the Group may
also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive
the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is
written off when there is no reasonable expectation of recovering the contractual cash flows.

  2.10      Cash                  

Cash
and cash equivalents comprise cash at banks and on hand which are subject to an insignificant risk of changes in value.

  2.11      Provisions  

General

Provisions
are recognized when the Group has a present obligation (legal or constructive) where, as a result of a past event, it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of
the amount of the obligation.

MAGNITUDE
INTERNATIONAL LTD AND ITS SUBSIDIARIES

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

  Material                                   
  accounting policy information (Continued)  
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  2.11      Provisions (Continued)  

General

Provisions
are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that
an outflow of economic resources will be required to settle the obligation, the provision is reversed. If the effect of the time value
of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to
the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Onerous
contract

If
the Group has a contract that is onerous, the present obligation under the contract is recognized and measured as a provision. However,
before a separate provision for an onerous contract is established, the Group recognizes