Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 145

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 19
Chunk 145
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 any impairment loss that has occurred on assets
dedicated to that contract. An onerous contract is a contract under which the unavoidable costs (i. e., the costs that the Group cannot
avoid because it has the contract) of meeting the obligations under the contract exceed the economic benefits expected to be received
under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost
of fulfilling it and any compensation or penalties arising from failure to fulfil it.

Defect
liability

If
the Group has a contractual commitment to rectify defect works for its construction contract during the defect liability period. A provision
is recognized at the balance sheet date for expected defect costs based on historical experience of the level of defects.

  2.12      Government  

Government
grants are recognized as a receivable when there is reasonable assurance that the grant will be received and all attached conditions
will be complied with.

When
the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for which
it is intended to compensate, are expensed. When the grant relates to an asset, the fair value is recognized as deferred income on the
statement of financial position and is recognized as income in equal amounts over the expected useful life of the related asset.

  2.13      Borrowing  

All
borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized
in profit or loss in the period in which they are incurred.

Borrowings
are presented as current liabilities unless the Group has an unconditional right to defer settlement for at least 12 months after the
reporting date. When an entity breaches an undertaking under a long-term loan agreement on or before the reporting date with the effect
that the liability becomes payable on demand, the liability is classified as current, even if the lender has agreed, after the reporting
date and before the authorization of the financial statements for issue, not to demand payment as a consequence of the breach. The liability
is classified as current because, at the reporting date, the entity does not have an unconditional right to defer its settlement for
at least twelve months after that date.

Where
the entity expects, and has the discretion, to re-finance or roll over an obligation for at least 12 months after the reporting period
under an existing loan facility with the same lender, the liability is classified as non-current