Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 34

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 4A
Chunk 34
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enses,
etc.

Please refer to “ Item 4. Information on
the Company - D. Property, Plant and Equipment - Intellectual Property.”

5. D. Trend Information.

Other than as disclosed elsewhere in this annual
report, we are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect
on our net revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause reported financial
information not necessarily to be indicative of future operating results or financial condition or results of operations.

5. E. Critical Accounting Estimates.

An accounting policy is considered critical if
it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time such estimate is
made, and if different accounting estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably
likely to occur periodically, could materially impact the consolidated financial statements.

We prepare our financial statements in conformity
with U. S. GAAP, which requires us to make judgments, estimates and assumptions. We continually evaluate these estimates and assumptions
based on the most recently available information, our own historical experiences and various other assumptions that we believe to be reasonable
under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could
differ from our expectations as a result of changes in our estimates. Some of our accounting policies require a higher degree of judgment
than others in their application and require us to make significant accounting estimates.

The following descriptions of critical accounting
policies, judgments and estimates should be read in conjunction with our consolidated financial statements and other disclosures included
in this prospectus. When reviewing our financial statements, you should consider (i) our selection of critical accounting policies, (ii)
the judgments and other uncertainties affecting the application of such policies and (iii) the sensitivity of reported results to changes
in conditions and assumptions.

Revenue recognition

  Revenue from Contracts with Customers  

ASC 606 establishes principles for reporting information
about the nature, amount, timing and uncertainty of revenues and cash flows arising from the entity’s contracts to provide goods
or services to customers. The core principle requires an entity to recognize revenues to depict the transfer of goods or services to customers
in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized
as performance obligations are satisfied. In according with ASC 606, revenues are recognized when we satisfy the performance obligations
by delivering