Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 146

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 19
Chunk 146
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MAGNITUDE
INTERNATIONAL LTD AND ITS SUBSIDIARIES

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

  Material                                   
  accounting policy information (Continued)  
 ─────────────────────────────────────────────

  2.14      Employee  

Defined
contribution plan

The
Group makes contributions to the Central Provident Fund scheme in Singapore, a defined contribution pension scheme. Contributions to
defined contribution pension schemes are recognized as an expense in the period in which the related service is performed.

Short-term
employee benefits

Short-term
employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is
recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result
of past service provided by the employee, and the obligation can be estimated reliably.

  2.15      Leases  

The
Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control
the use of an identified asset for a period of time in exchange for consideration.

As
lessee

The
Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets.
The Group recognizes lease liabilities representing the obligations to make lease payments and right-of-use assets representing the right
to use the underlying leased assets.

Right-of-use
assets

The
Group recognizes right-of-use assets at the commencement date of the lease (i. e. the date the underlying asset is available for use).
Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement
of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred,
and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on
a straight-line basis over the shorter of the lease term and- the estimated useful lives of the assets.

If
ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. The
accounting policy for impairment is disclosed in Note 2.7.

Lease
liabilities

At