Company: GRAN
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069627
Chunk: 174

Company: Grande Group Ltd/HK
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 174
---
 to date under the agreement
and thus criterion ASC 606-10-25-27 (c) is met.

As
a result, the services fee income is recognized over time and the Company uses an input method based on project labor hours incurred
to date compared to total estimated project labor hours to measure its progress toward complete satisfaction of the performance obligation.
The input method is the most representative depiction of the Company’s performance because it directly measures the value of the
services transferred to the customer.

The
Company considers the milestone payments as variable consideration because the amount it expects to receive can vary depending on the
achievement of the future milestones. The Company uses the most likely amount method to estimate the variable consideration in its contract
applying ASC 606-10-32-8 because it is the method that the Company expects to better predict the amount of consideration to which it
will be entitled. However, given that the milestone payments are significant and the successful submission of the listing application
is largely not within the control of the Company and subject to significant uncertainty, the Company determines that the probable criterion
in ASC 606-10-32-11 is not met for the milestone payment. Nevertheless, the agreement contains a right to payment clause which entitles
the Company to an enforceable right to payment for its performance completed to date at all times throughout the duration of the contract
even if the respective next milestones are not achieved. Therefore, the Company applies its judgement and estimates the transaction price
at contract inception. At each reporting date, the Company considers any change in expected outcome and updates its estimation of the
transaction price (including updating its estimate of variable consideration and whether that estimate is constrained) by applying ASC
606-10-32-14.

Underwriting
and placing services

The
Company enters into the same agreement with the IPO services with its customers for underwriting syndicates for certain of those IPOs
that the Company acted as sponsors, in return for underwriting commissions.

The
underwriting and placing service are identified as a separate performance obligation. Placing commission income is recognized at a point
in time when the performance obligation has been satisfied by the completion of provision of placing services under the respective engagement
terms, which is typically at the closing of the transaction. The customer of the Company is the securities issuers. The placing commitment,
as stated in the placing agreement with securities issuers, is that the Company is an agent to provide placing services by using its
reasonable best efforts to procure potential subscribers to subscribe