Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 150

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 19
Chunk 150
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 requires management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the end
of each reporting period. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment
to the carrying amount of the asset or liability affected in the future periods.

  3.1      Judgments                             

Other
than significant judgement made relating to control over BNL as disclosed in Note 1, management is of the opinion that there are no
significant judgements made in applying accounting estimates and policies that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next year.

  3.2      Key                                

The
key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period are discussed
below. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances
and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the
Group. Such changes are reflected in the assumptions when they occur.

MAGNITUDE
INTERNATIONAL LTD AND ITS SUBSIDIARIES

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

  Significant                                      
  accounting judgements and estimates (Continued)  
 ───────────────────────────────────────────────────

  3.2      Key                                            

Revenue
recognition from provision of electrical works and installation services

The
Group recognizes contract revenue and contract costs from provision of electrical works and installation services for construction projects
using input method, based on the actual costs incurred by the Group to date compared with the total budgeted costs for the project to
estimate the revenue recognized during the period. The estimated total contract costs are based on contracted amounts, and in respect
of amounts not contracted for, management’s estimates of the amounts to be incurred taking into consideration historical trends
of the amounts incurred and adjusted for any price fluctuations during the year, where applicable. Notwithstanding that management reviews
and revises the estimates of both revenue and total contract costs as the contract progresses, the actual outcome of the contract in
terms of its total revenue and costs may be higher or lower than the estimates and this will affect the revenue and profit recognized.

Management
reviews the construction contracts for foreseeable losses whenever there is an indication that the estimated contract revenue is lower
than the estimated total contract costs. The carrying amounts of