Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 777

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 777
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ment for health, prepaid cards and detection kits. Inventory is measured at the lower of cost or net realizable value on a first-in, first-out basis. When evidence exists
that the net realizable value of inventory is lower than its cost, provisions shall be made to write inventory down and a loss shall
be recognized in earnings in the period in which it occurs. That loss may be required, for example, due to damage, physical deterioration,
obsolescence, changes in price levels, or other reasons. As of September 30, 2024, there was no inventory located at third party warehouse.

Financial
Instrument

The
carrying amounts reported in the balance sheet for cash, other receivables, accrued liabilities and other payables approximate fair value
because of the immediate or short-term maturities of these financial instruments.

    F-16

Property
and Equipment

Property
and equipment are stated at cost less accumulated depreciation and impairment losses. Gains and losses on dispositions of property and
equipment are included in operating income (loss). Major additions, renewals and improvements are capitalized, while maintenance and
repairs are recognized as expense as incurred.

Depreciation
is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method over the
useful lives of the assets are as follows:

 SCHEDULE OF PROPERTY PLANT AND EQUIPMENT USEFUL LIVES

    Classification
     
    Estimated
    useful
    life
  
    Leasehold
    improvements
     
    5
    years
  
    Office
    equipment
     
    3
    years
  
    Computer
    equipment
     
    3
    years
  
    Computer
    software
     
    5
    years

Intangible
Assets

Intangible
assets represent the licensing cost for the trademark registration. For intangible assets with indefinite lives, the Company evaluates
intangible assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying
value may not be recoverable. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the
carrying value exceeds the fair value. For intangible assets with definite lives, they are amortized over estimated useful lives, and
are reviewed annually for impairment. The Company has not recorded impairment of intangible assets as of September 30, 2024 and 2023.

Goodwill

Goodwill
represents