Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 239

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 19
Chunk 239
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fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair
value of financial instruments held by the Group.

The accounting standards define
fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements
for fair value measures. The three levels are defined as follow:

  Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.  

  Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either direct...  

  Level 3 inputs to the valuation methodology are unobserved and significant to the fair value.  

Financial instruments included
in current assets and current liabilities are reported in the balance sheets at face value or cost because of the short period of time
between the origination of such instruments and their expected realization and their current market rates of interest.

F-9

Revenue recognition

The Group adopted ASC Topic
606, Revenue from Contracts with Customers. The five-step model defined by ASC Topic 606 requires the Group to (1) identify its contracts
with customers, (2) identify its performance obligations under those contracts, (3) determine the transaction prices of those contracts,
(4) allocate the transaction prices to its performance obligations in those contracts and (5) recognize revenue when each performance
obligation under those contracts is satisfied. Revenue is recognized when promised goods or services are transferred to the customer in
an amount that reflects the consideration expected in exchange for those goods or services.

Revenues are recognized when
control of the promised services and deliverables are transferred to the Group’s clients in an amount that reflects the consideration
the Group expects to be entitled to and receive in exchange for services and deliverables rendered.

The Group has elected to apply
the practical expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have
original expected durations of one year or less.

The Group elected a practical
expedient that it does not adjust the promised amount of consideration for the effects of a significant financing component if the Group
expects that, upon the inception of revenue contracts, the period between when the Group transfers its promised services or deliverables
to its clients and when the clients pay for those services or deliverables will be one year or less.

As a practical expedient,
the Group elected to expense the incremental costs of obtaining a contract