Company: TGE
Filing Date: 2025-07-03
Form Type: F-1/A
Source: 0001213900-25-061211
Chunk: 305

Company: Generation Essentials Group
Filing Date: 2025-07-03
Form: F-1/A
Chunk 305
---
 transaction is recognized in capital reserve. |

A joint venture is a type of joint arrangement whereby the
parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually
agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent
of the parties sharing control.

The Group’s investment in joint ventures are stated
in the consolidated statement of financial position at cost and the Group’s share of net assets under the equity method of accounting,
less any impairment losses. The financial statements of joint ventures used for equity accounting purposes are prepared using uniform
accounting policies as those of the Group for like transactions and events in similar circumstances. Appropriate adjustments have been
made to conform the joint venture’s accounting policies to those of the Group. The Group’s share of the post-acquisition results
and other comprehensive income of joint ventures is included in the consolidated statement of profit or loss and other comprehensive income,
respectively. Changes in net assets of joint venture other than profit or loss and other comprehensive income are not accounted for unless
such changes resulted in changes in ownership interest held by the Group. When the Group’s share of losses of a joint venture exceeds
the Group’s interest in that joint venture exceeds the Group’s interest in that joint venture, the Group discontinues recognising
its share of further losses. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations
or made payments on behalf of the joint venture.

<div align='center'>F-54

THE GENERATION ESSENTIALS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F OR THE YEARS ENDED DECEMBER 31, 2022, 2023 AND 2024</div>

| 2. | APPLICATION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS 
 (cont.)                                                    |

An investment in a joint venture is accounted for using the
equity method from the date on which the investee becomes a joint venture. On acquisition of the investment in a joint venture, any excess
of the cost of the investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the investee
is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Group’s share of the
net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognized immediately
in profit or