Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 966

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1C
Chunk 966
---
.

Use
of Estimates and Assumptions

The
preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make
estimate and assumptions that impact the presented amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the presented amounts of revenues and expenses during the period. Actual results may differ
from those estimates. Significant estimates during the year ended September 30, 2024 and 2023 include the collectability of receivables,
the useful lives of long-lived assets, goodwill and intangibles, assumptions used in assessing impairment of long-lived assets, valuation of accruals
for expenses, and tax due.

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.

Non-controlling interests

For the Company’s non-wholly owned subsidiaries, a non-controlling interest is recognized to reflect portion
of equity that is not attributable, directly or indirectly, to the Company. The cumulative results of operations attributable to non-controlling
interests are also recorded as non-controlling interests in the Company’s consolidated balance sheets and consolidated statements
of operations and comprehensive income (loss). Cash flows related to transactions with non-controlling interests are presented under financing
activities in the consolidated statements of cash flows.

Foreign
Currency Translation

The
reporting currency of the Company is the U.S. Dollar. Our entity in the British Virgin Islands uses the U.S. dollar. Our entities in
the PRC and Hong Kong use the local currencies, Renminbi (RMB) and 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