Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 143

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 19
Chunk 143
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 from its fixed deposits with bank. It also has exposure on cash
flow interest rate risk which is mainly arising from its deposits with banks.

In
respect of the exposure to cash flow interest rate risk arising from floating rate non-derivative financial instruments held by the Group,
such as cash, at the end of the reporting period, the Group is not exposed to significant interest rate risk as the interest rates of
cash at bank are not expected to change significantly.

Foreign
currency risk

The
Group is exposed to foreign currency risk primarily through service income that are denominated in a currency other than the functional
currency of the operations to which they relate. The currencies giving rise to this risk are primarily United States dollars (US$). As
HK$ is currently pegged to US$, the Group’s exposure to foreign exchange fluctuations is minimal.

MAGIC
EMPIRE GLOBAL LIMITEDNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

  SUMMARY                                     
  OF SIGNIFICANT ACCOUNTING POLICIES (cont.)  
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Recent
Accounting Pronouncements

In
November 2023, the FASB issued ASU 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segment
Disclosures.” The amendments in this ASU are intended to improve reportable segment disclosure requirements primarily through
enhanced disclosures about significant segment expenses. This ASU requires disclosure of significant segment expenses that are
regularly provided to the chief operating decision mark (CODM), an amount for other segment items by reportable segment and a
description of its composition, all annual disclosures required by FASB ASU Topic 280 in interim periods as well, and the title
and position of the CODM and how the CODM uses the reported measures. Additionally, this ASU requires that at least one of the
reported segment profit and loss measures should be the measure that is most consistent with the measurement principles used in an
entity’s consolidated financial statements. Lastly, this ASU requires public business entities with a single reportable
segment to provide all disclosures required by these amendments in this ASU and all existing segment disclosures in Topic 280.
This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years
beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively. The Group adopted ASU 2023-07 for the year