Company: KPEA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006580
Chunk: 45

Company: Kun Peng International Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 45
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    13

Foreign
Currency Translation

The
reporting currency of the Company is the U.S. Dollar. Our entity in the British Virgin Islands uses U.S. dollar. Our entities in the
PRC and Hong Kong use the local currencies, Renminbi (RMB) and the Hong Kong Dollar (HKD), as their functional currencies as determined
based on the criteria of ASC 830, “Foreign Currency Translation.”

Assets
and liabilities are translated at the unified exchange rate as quoted by www.xe.com at the end of the period. Income and expense accounts
are translated at the average translation rates and equity accounts are translated at historical rates. Translation adjustments resulting
from this process are included in accumulated other comprehensive income in the statement of equity. Transaction gains and losses that
arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the
results of operations as incurred.

Translation
adjustments included in accumulated other comprehensive gain amounted to $482,029 and $200,368 for the quarter ended December 31, 2024
and the fiscal year ended September 30, 2024, respectively.

The
following table shows the foreign exchange rates set forth in the H.10 statistical release of the Federal Reserve Board used for translation:

SCHEDULE
OF FOREIGN EXCHANGE RATES

    Hong Kong Dollar (HKD)  
    Chinese Renminbi (RMB) 
  
    As of December 31, 2024 (Closing Rate) 

    United States dollar ($1) 
     7.7677  
     7.2993 

    For the three months ended December 31, 2024 (Average Rate) 

    United States dollar ($1) 
     7.7744  
     7.1896 

    Hong Kong Dollar (HKD)  
    Chinese Renminbi (RMB) 
  
    As of September 30, 2024 (Closing Rate) 

    United States dollar ($1) 
     7.7693  
     7.0176 

    Hong Kong Dollar (HKD)  
    Chinese Renminbi (RMB) 

    For the three month period ended December 31, 2023 (Average Rate) 

    United States dollar ($1) 
     7.8140  
     7.2247 

Cash
and Cash Equival