Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 108

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 19
Chunk 108
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of March 31, 2025 and 2024, financial instruments of the Company comprised primarily current assets and current liabilities including
cash and cash equivalents, restricted cash, loans receivable, receivables from customers, receivables from broker-dealers and clearing
organizations, securities owned, at fair value, payables to customers and payables to holders of structured notes. The carrying amount
of cash and cash equivalents, restricted cash, loans receivable, receivables from customers, receivables from broker-dealers and clearing
organizations, payables to customers and payables to holders of structured notes approximate their fair values because of the short-term
nature of these instruments. Securities owned, at fair value as of March 31, 2025 and 2024, mainly consist of common stock investments
and are based upon quoted market price.

Share-based
compensation

Share-based
awards granted are measured at fair value on grant date and share-based compensation expense is recognized (i) immediately at the grant
date if no vesting conditions are required, or (ii) using the straight-line attribution method, net of estimated forfeitures, over the
requisite service period. The fair values of restricted stock units (“ RSUs”) and restricted shares are determined with reference
to the fair value of the underlying shares and the fair value of share options is generally determined using the Black-Scholes valuation
model. The value is recognized as an expense over the respective service period, net of estimated forfeitures. Share-based compensation
expense, when recognized, is charged to the consolidated income statements with the corresponding entry to additional paid-in capital,
liability or noncontrolling interests.

On
each measurement date, the Company reviews internal and external sources of information to assist in the estimation of various attributes
to determine the fair value of the share-based awards granted by the Company, including the fair value of the underlying shares, expected
life and expected volatility. The Company recognizes the impact of any revisions to the original forfeiture rate assumptions in the consolidated
income statements, with a corresponding adjustment to equity.

F-19

TOP
Financial Group Limited

Notes
to Consolidated Financial Statements

For
the Years Ended March 31, 2025, 2024 and 2023

2.
Summary of Significant Accounting Policies (Continued)

Segment
reporting

The
Company uses the management approach to determine operating segment. The management approach considers the internal organization and
reporting used by the Company’s chief operating decision