Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 142

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 19
Chunk 142
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 have been determined, net of depreciation, had
no impairment loss been recognized previously. Such reversal is recognized in profit or loss.

MAGNITUDE
INTERNATIONAL LTD AND ITS SUBSIDIARIES

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

  2.8      Financial    

Financial
assets

Initial
recognition and measurement

Financial
assets are recognized when, and only when the entity becomes party to the contractual provisions of the instruments.

At
initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value
through profit or loss (“ FVPL”), transaction costs that are directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at FVPL are expensed in profit or loss.

Trade
receivables are measured at the amount of consideration to which the Group expects to be entitled in exchange for transferring promised
goods or services to a customer, excluding amounts collected on behalf of third party, if the trade receivables do not contain a significant
financing component at initial recognition.

Subsequent
measurement

Debt
instruments

Subsequent
measurement of debt instruments depends on the Group’s business model for managing the asset and the contractual cash flow characteristics
of the asset. The three measurement categories for classification of debt instruments are amortized cost, fair value through other comprehensive
income (“ FVOCI”) and FVPL.

Financial
assets that are held for the collection of contractual cash flows where those cash flows represent solely payments of principal and interest
are measured at amortized cost. Financial assets are measured at amortized cost using the effective interest method, less impairment.
Gains and losses are recognized in profit or loss when the assets are derecognized or impaired, and through the amortization process.

Debt
instruments that are held for trading as well as those that do not meet the criteria for classification as amortized cost or FVOCI are
classified as FVPL. Movement in fair values and interest income is recognized in the period in which it arises and presented in “other
income and expenses, net”.

Derecognition

A
financial asset is derecognized where the contractual right to receive cash flows from the asset has expired. On derecognition of a financial
asset in its entirety, the difference between the carrying amount and