Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 137

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 19
Chunk 137
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 change. Any resulting increases or decreases
in estimated revenues or costs are reflected in the profit or loss in the period in which the circumstances that give rise to the revision
become known by management.

MAGNITUDE
INTERNATIONAL LTD AND ITS SUBSIDIARIES

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

  2.2      Revenue (Continued)  

The
customer is invoiced on a milestone payment schedule with a credit term of 35 days. If the value of the goods transferred by the Group
exceeds the payments, a contract asset is recognized. If the payments exceed the value of the goods transferred, a contract liability
is recognized.

For
costs incurred in fulfilling the contract which are within the scope of another IFRS, these have been accounted for in accordance with
those other IFRSs. If these are not within the scope of another IFRS, the Group will capitalize these as contract costs assets only if
(a) these cost related directly to a contact or an anticipated contract which the Group can specifically identify; (b) these costs generate
or enhance resources of the Group that will be used in satisfying (or in continuing to satisfy) performance obligations in the future;
and (c) these costs are expected to be recovered. Otherwise, such costs are recognized as an expense immediately.

Capitalized
contract costs are subsequently amortized on a systematic basis as the Group recognizes the related revenue over time. An impairment
loss is recognized in the profit or loss to the extent that the carrying amount of capitalized contract costs exceeds the expected remaining
consideration less any directly related costs not yet recognized as expenses.

Revenue
from ad-hoc services

Ad-hoc
services includes various types of electrical addition and alteration works that are generally completed within 30 days, revenue from
which is recognized at a point in time when control of the asset has been transferred to its customer, being when the customer has accepted
the services in accordance with the sales contract or the Group has objective evidence that all criteria for acceptance have been satisfied.
There is no element of significant financing component in the Group’s revenue transaction as customers are required to pay with
a credit term of 30 days from the invoice date.

  2.3      Basis             

Consolidation

Subsidiaries
are all entities (including structured entities) over which the Group