Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 125

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 19
Chunk 125
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ING POLICIES (cont.)  
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Foreign
currency translation

The
Group uses Hong Kong Dollar (“ HK$”) as its reporting currency. The functional currency of the Company in British Virgin Islands
is United States Dollar (“ US$”) and the Company’s subsidiaries in Hong Kong is HK$, which is its respective local currency
based on the criteria of ASC 830, “ Foreign Currency Matters

In
the consolidated financial statements of the Company, transactions in currencies other than the functional currency are measured and
recorded in the functional currency using the exchange rate in effect at the date of the transaction. At the balance sheet date, monetary
assets and liabilities that are denominated in currencies other than the functional currency are translated into the functional currency
using the exchange rate at the balance sheet date. All gains and losses arising from foreign currency transactions are recorded in the
income statements during the year in which they occur.

Convenience
translation

Translations
of amounts in the consolidated balance sheet, consolidated statements of operations and consolidated statements of cash flows from HK$
into US$ as of and for the year ended December 31, 2024 are solely for the convenience of the reader and were calculated at the noon
buying rate of US$ 1 7.7677

Use
of estimates

The preparation of consolidated financial statements in conformity with
U. S. GAAP requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts
of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other
factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about
carrying values of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected
in the Group’s consolidated financial statements include impairment assessment on long-term investment. Actual results may differ
from these estimates.

Cash

Cash
mainly represent cash at bank and demand deposits which have original maturities less than three months and are unrestricted as to withdrawal
or use. As of December 31, 2024 and 2023, the Group did not have any cash equivalents. The Group maintains bank accounts in Hong Kong.

MAGIC
EMPIRE GLOBAL LIMITEDNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

  SUMMARY                                     
  OF SIGNIFICANT ACCOUNTING POLICIES (cont.)  
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