Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 31

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 31
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 Compensation – Stock Compensation. This ASU clarifies how to determine whether profits interest and similar awards
should be accounted for as share-based payment arrangements. The ASU is effective in reporting periods beginning after December 15, 2024,
including interim periods within the fiscal year, on a prospective or retrospective basis. Early adoption is permitted. The Company is
currently evaluating the impact that adoption of this accounting standard will have on its condensed consolidated financial statements
and disclosures.

In November 2023, the FASB issued
ASU 2023-07, Improvements to Reportable Segment Disclosures. This ASU requires annual and interim disclosure of significant segment expenses
that are provided to the CODM as well as interim disclosures for all reportable segment’s profit or loss and assets. This guidance
also requires disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measures of segment
profit or loss in assessing segment performance and deciding how to allocate resources. This guidance is expected to improve financial
reporting by providing additional information about a public company’s significant segment expenses and more timely and detailed
segment information reporting throughout the fiscal period. The ASU is effective for the Company’s fiscal years beginning after
December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company
is currently evaluating the impact that adoption of this accounting standard will have on its consolidated financial statements and disclosures.

In December 2023, the FASB issued
ASU 2023-09, Improvements to Income Tax Disclosures. This ASU requires greater disaggregation of information about a reporting entity’s
effective tax rate reconciliation as well as information on income taxes paid. This ASU applies to all entities subject to income taxes
and is intended to help investors better understand an entity’s exposure to potential changes in jurisdictional tax legislation
and assess income tax information that affects cash flow forecasts and capital allocation decisions. This ASU is effective for annual
periods beginning after December 15, 2024, with early adoption permitted. This ASU should be applied on a prospective basis although retrospective
application is permitted. The Company is currently evaluating the impact that adoption of this accounting standard will have on its consolidated
financial statements and disclosures.

Other than those disclosed above,
management does not believe that any recently issued or recently issued but not yet adopted accounting pronouncements will have a material
impact on the Company’s financial