Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 378

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 8
Chunk 378
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 in assessing segment performance and deciding how to allocate resources. This guidance
is expected to improve financial reporting by providing additional information about a public company’s significant segment expenses
and more timely and detailed segment information reporting throughout the fiscal period. The ASU is effective for the Company’s
fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption
is permitted. The Company is currently evaluating the impact that adoption of this accounting standard will have on its consolidated
financial statements and disclosures.

In
December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. This ASU requires greater disaggregation of information
about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. This ASU applies to all
entities subject to income taxes and is intended to help investors better understand an entity’s exposure to potential changes
in jurisdictional tax legislation and assess income tax information that affects cash flow forecasts and capital allocation decisions.
This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. This ASU should be applied
on a prospective basis although retrospective application is permitted. The Company is currently evaluating the impact that adoption
of this accounting standard will have on its consolidated financial statements and disclosures.

There
were other updates recently issued. The management does not believe that other than the disclosed above, accounting pronouncements the
recently issued but not yet adopted will have a material impact on its financial position results of operations or cash flows.

NOTE
3 - VARIABLE INTEREST ENTITIES “VIE” ARRANGEMENTS

On
May 15, 2021, King Eagle (China) entered into a series of contractual arrangements with King Eagle (Tianjin) and its shareholders. As
a result of the contractual arrangements, the Company classified King Eagle (Tianjin) as a Variable Interest Entity “VIE.”

    F-24

King
Eagle (Tianjin) Technology Co., Ltd. (“King Eagle (Tianjin)”) was incorporated as a limited liability company in Tianjin
Pilot Free Trade Zone in the People’s Republic of China on September 2, 2020, with a registered capital of approximately $1.5 million
(RMB 10 million). It is owned by multiple individuals: It is owned by multiple individuals: Chengyuan Li (approximately 45.