Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 555

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 555
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 for the benefit of employees, such as pension and income-sharing trusts
that are managed by or under the trusteeship of management; (iv) principal owners of the Company; (v) management of the Company; (vi)
other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies
of the other to the extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and
(vii) other parties that can significantly influence the management or operating policies of the transacting parties or that have an
ownership interest in one of the transacting parties and can significantly influence the other to the extent that one or more of the
transacting parties might be prevented from fully pursuing its own separate interests.

The
consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements,
expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated
in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include:
(i) the nature of the relationship(s) involved; (ii) a description of the transactions, including transactions to which no amounts or
nominal amounts were ascribed, for each of the periods for which income statements are presented; and (iii) such other information deemed
necessary to an understanding of the nature of the related party transactions.

Comprehensive
Income (Loss)

Other
comprehensive income (loss) refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included
in comprehensive income but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders’
equity. Our other comprehensive loss for the years ended September 30, 2024 and 2023 was comprised of foreign currency translation adjustments.

Revenue
Recognition

Revenue
is comprised of sales of goods and represents the amount of consideration the Company is entitled to upon the transfer of goods. Revenue
was recorded on a gross basis, net of surcharges and value added tax (“VAT”) of gross sales. Pursuant to FASB ASU No. 2016-08,
Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), the Company
recorded revenue on a gross basis because the Company is the primary obligor of the sales arrangements has latitude in establishing prices,
has discretion in suppliers’ selection and assumes credit risks on rece