Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 76

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 5
Chunk 76
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, net.”

5. D Trend Information

The trends impacting us are
described elsewhere in this annual report on Form 20-F, including in Items 3. D., 4. B., 5. A. and B. and 10. C.

5. E Critical Accounting Policies and Estimates

We describe our material accounting
policies more fully in Note 2 to our consolidated financial statements for the year ended December 31, 2024, included elsewhere in this
annual report in Form 20-F. We believe that the accounting policies below are critical to fully understand and evaluate our financial
condition and results of operations.

We prepare our consolidated
financial statements in accordance with IFRS Accounting Standards. At the time of the preparation of the consolidated financial statements,
our management is required to use estimates, evaluations, and assumptions which affect the application of the accounting policy, and the
amounts reported for assets, obligations, income, and expenses. Any estimates and assumptions are continually reviewed. The changes to
the accounting estimates are credited during the period in which the change in the estimate is made.

Goodwill Impairment

Goodwill arising from a business
combination represents the excess of the overall amount of the consideration transferred, the amount of any non-controlling interests
in the acquired company over the net amount as of acquisition date of the identifiable assets acquired and the liabilities assumed. Impairment
reviews of the cash-generating-unit, or CGU, to which goodwill was allocated are undertaken annually and whenever there is any indication
of impairment of a CGU. The carrying amount of our assets, including goodwill, is compared to the recoverable amount, which is the higher
of, value in use and the fair value less costs to sell. Any impairment loss is allocated to reduce the carrying amount of the assets at
the following order: first to reduce the carrying amount of any goodwill allocated to a CGU and subsequently to the remaining assets we
have, which fall within the scope of the IAS 36, “ Impairment of Assets,” on a proportionate basis based on the carrying amount
of each of our assets. Any impairment loss is recognized immediately in profit or loss and is not subsequently reversed.

Goodwill is tested annually
for impairment, or more frequently if events or changes in circumstances indicate that it may be impaired. For the 2024 and 2023 reporting
periods, the recoverable amount of our CGUs was determined based on value-in-use calculations which require the use