Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 86

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 3
Chunk 86
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contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed.
Management does not believe, based upon information available at this time that these matters will have a material adverse effect on
the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not
materially and adversely affect the Company’s business, financial position, and results of operations or cash flows.

    F-23

Recent
Accounting Pronouncement

Recently
Adopted Accounting Standards

In
March 2024, the FASB issued ASU 2024-01, Compensation – Stock Compensation. This ASU clarifies how to determine whether profits
interest and similar awards should be accounted for as share-based payment arrangements. The ASU is effective in reporting periods beginning
after December 15, 2024, including interim periods within the fiscal year, on a prospective or retrospective basis. 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
November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures. This ASU requires annual and interim disclosure
of significant segment expenses that are provided to the CODM as well as interim disclosures for all reportable segment’s profit
or loss and assets. This guidance also requires disclosure of the title and position of the CODM and an explanation of how the CODM uses
the reported measures of segment profit or loss 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