Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 142

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 142
---
 been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over
the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

At each reporting date, the Group assesses whether
the credit risk on a financial instrument has increased significantly since initial recognition. When making the assessment, the Group
compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on
the financial instrument as at the date of initial recognition and considers reasonable and supportable information that is available
without undue cost or effort, including historical and forward-looking information.

The Group considers a financial asset in default
when contractual payments are 120 days 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 ...  
  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 lif...  

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