Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 368

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 8
Chunk 368
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 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 the excess of the consideration paid of an acquisition over the fair value of the net identifiable assets of the acquired
subsidiaries at the date of acquisition. Goodwill is not amortized and is tested for impairment at least annually, more often when circumstances
indicate impairment may have occurred. Goodwill is carried at cost less accumulated impairment losses. If impairment exists, goodwill
is immediately written off to its fair value and the loss is recognized in the consolidated statements of operations and comprehensive
income (loss). Impairment losses on goodwill are not reversed.

The
amendments in ASU 2017-04 eliminate Step 2 of the goodwill impairment test. As such, an entity will perform its annual, or interim, goodwill
impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment
charge for the amount by which the reporting unit’s carrying amount exceeds its fair value. If fair value exceeds the carrying
amount, no impairment should be recorded. Any loss recognized should not exceed the total amount of goodwill allocated to that reporting
unit. Impairment losses on goodwill cannot be reversed once recognized.

When
measuring a goodwill impairment loss, an entity should consider the income tax effects from any tax deductible goodwill on the carrying
amount of the reporting unit. The ASU contains an illustration of the simultaneous equations method to demonstrate this, which reflects
a deferred tax benefit from reducing the carrying amount of tax-deductible goodwill relative to the tax basis.

An
entity may still perform the optional qualitative assessment for a reporting unit to determine if it is more likely than not that goodwill
is impaired. However, this ASU eliminates the requirement to perform a qualitative assessment for any reporting unit with zero or negative
carrying amount. Therefore, the same one-step impairment assessment will apply to all reporting units.

For
the year ended September 30, 2024,