Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 24

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 24
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, accounts payable, and accrued expenses.

     15 

Related Party Transactions

The Company follows the ASC 850-10,
“Related Party Disclosures” for the identification of related parties and disclosure of related party transactions.

Pursuant to section 850-10-20
the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required,
absent the election of the fair value option under the Fair Value Option Subsection of section 825-10-15, to be accounted for by the equity
method by the investing entity; c) trusts for the benefit of employees, such as pension and income-sharing trusts that are managed by
or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which
the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent
that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly
influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting
parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully
pursuing its own separate interests.

The condensed consolidated financial
statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances,
and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation
of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of
the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were
ascribed, for each of the periods for which income statements are presented; and c) such other information deemed necessary to an understanding
of the nature of the related party transactions.

Comprehensive
Income (Loss)

Other
comprehensive income (loss) refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included
in comprehensive income but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders’
equity. Our other comprehensive loss for the quarters ended March 31, 2025 and 2024 was comprised
of foreign currency translation adjustments.

Revenue
Recognition

Revenue
is comprised