Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 229

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 229
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 asset
in default when contractual payments are 1 year past due. However, in certain cases, the Group may also consider a financial asset to
be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts
in full before taking into account any credit enhancements held by the Group. A financial asset is written off when there is no reasonable
expectation of recovering the contractual cash flows.

Debt instruments at fair value through
other comprehensive income and financial assets at amortized cost are subject to impairment under the general approach and they are classified
within the following stages for measurement of ECLs except for trade receivables which apply the simplified approach as detailed below.

Stage 1 - Financial instruments
for which credit risk has not increased significantly since initial recognition and for which the loss allowance is measured at an amount
equal to 12-month ECLs

Stage 2 - Financial instruments
for which credit risk has increased significantly since initial recognition but that are not credit-impaired financial assets and for
which the loss allowance is measured at an amount equal to lifetime ECLs

Stage 3 - Financial assets that
are credit-impaired at the reporting date (but that are not purchased or originated credit-impaired) and for which the loss allowance
is measured at an amount equal to lifetime ECLs

Simplified approach

For trade receivables that do not contain
a significant financing component or when the Group applies the practical expedient of not adjusting the effect of a significant financing
component, the Group applies the simplified approach in calculating ECLs. Under the simplified approach, the Group does not track changes
in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision
matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic
environment.

For trade receivables that contain a
significant financing component and lease receivables, the Group chooses as its accounting policy to adopt the simplified approach in
calculating ECLs with policies as described above.

Financial instruments - derecognition
of financial assets

A financial asset (or, where applicable,
a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i. e., removed from the Group’s
consolidated statement of financial position) when:

  the rights to receive cash flows from the asset have expired; or