Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 20

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 20
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 any assurance that it will be able to increase revenue, that it will be able to successfully implement its
business plan, or that financing will be available to it on commercially acceptable terms, if at all. The financial statements do not
include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications
of liabilities that may result should the Company be unable to continue as a going concern. The directors intend to continue to support
the group by providing adequate financial assistance to enable the group to continue its business operations for the foreseeable future.

Earnings (loss) Per Share

Basic income (loss) per share
is computed by dividing net income (loss) attributable to the holders of ordinary shares by the weighted average number of ordinary shares
outstanding during the year. Diluted income (loss) per share is calculated by dividing net income (loss) attributable to the holders of
ordinary shares as adjusted for the effect of dilutive ordinary share equivalents, if any, by the weighted average number of ordinary
shares and dilutive ordinary share equivalents outstanding during the period. However, ordinary share equivalents are not included in
the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive, such as in a period
in which a net loss is recorded.

Foreign Currency Translation

The reporting currency of the
Company is the U.S. Dollar. Our entity in the British Virgin Islands uses U.S. dollar. Our entities in the PRC and Hong Kong use the local
currencies, Renminbi (RMB) and the Hong Kong Dollar (HKD), as their functional currencies as determined based on the criteria of ASC 830,
“Foreign Currency Translation.”

Assets and liabilities are translated
at the unified exchange rate as quoted by www.xe.com at the end of the period. Income and expense accounts are translated at the average
translation rates and equity accounts are translated at historical rates. Translation adjustments resulting from this process are included
in accumulated other comprehensive income in the statement of equity. Transaction gains and losses that arise from exchange rate fluctuations
on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.

Translation adjustments included
in accumulated other comprehensive gain amounted to $440,656 and $200,368 for the quarter ended March 31, 2025 and the fiscal year ended
September 30, 2024, respectively.

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The following table shows the
foreign exchange rates set