Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 147

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 19
Chunk 147
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the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made
over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable,
variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease
payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties
for terminating the lease, if the lease term reflects the Group exercising the option to terminate. Variable lease payments that do not
depend on an index or a rate are recognized as expenses (unless they are incurred to produce inventories) in the period in which the
event or condition that triggers the payment occurs.

MAGNITUDE
INTERNATIONAL LTD AND ITS SUBSIDIARIES

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

  2.15      Leases (Continued)  

Lease
liabilities

In
calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because
the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e. g. changes to future payments
resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase
the underlying asset.

The
Group’s lease liabilities are presented in Note 12.

Short-term
leases and leases of low-value assets

The
Group applies the short-term lease recognition exemption to its short-term leases of machinery (i. e. those leases that have a lease term
of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets
recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases
of low value assets are recognized as expense on a straight-line basis over the lease term.

  2.16      Taxes  

Current