Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 35

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 4A
Chunk 35
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 the promised services to the customers, in an amount that reflects the consideration we expect to be entitled to in exchange
for those services.

We identified each distinct service as a performance
obligation. The recognition and measurement of revenues is based on the assessment of individual contract terms. We applied a practical
expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one
year or less. We have no material incremental costs of obtaining contracts with customers that we expect the benefit of those costs to
be longer than one year, which need to be recognized as assets.

Futures brokerage commissions

We earn fees and commissions from futures
brokerage services based on a fixed rate for each transaction, all of which are under the consolidated accounts where the customer
information is not disclosed to the third party brokers. When a customer executes a futures transaction through our platform,
futures brokerage commission is recognized upon the completion of this transaction. Only a single performance obligation is
identified for each futures trading transaction, and the performance obligation is satisfied on the trade date because that is when
the underlying financial instrument is identified, the pricing of brokerage service is agreed upon and the promised services are
delivered to customers. All of our revenues from contracts with customers are recognized at a point in time. The futures brokerage
service could not be cancelled once it is executed and is not refundable, so returns and allowances are not applicable. Commissions
are charged for each customer trade order executed and cleared by the third-party brokers. We recognize revenues on a gross basis as
we are determined to be the primary obligor in fulfilling the trade order initiated by the customer. The Company may offer volume
rebates as trading incentives to certain customers. The Company will review the customer’s transaction volume monthly and
provide volume rebate on the commission charge to specific customer with large volume transactions. The volume rebate offered to
such customer is accounted for as a variable consideration and determined based on most-likely amount method, which is recognized as
a reduction of revenues. No client has reached the target volume in the past 3 years, and no volume rebates offered during
the years ended March 31, 2025, 2024 and 2023.

Trading solution services fees

We provide trading solution services to customers
(including individuals, proprietary trading companies or brokerage companies) for their trading on derivatives, equity, CFD and other
financial products, through the internally developed proprietary investment management software. Our trading