Company: TGE
Filing Date: 2025-12-03
Form Type: 424B3
Source: 0001213900-25-117807
Chunk: 267

Company: Generation Essentials Group
Filing Date: 2025-12-03
Form: 424B3
Chunk 267
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MENTS
F OR THE YEARS ENDED DECEMBER 31, 2022, 2023 AND 2024</div>

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

All regular way purchases or sales
of financial assets are recognized and derecognized on a trade date basis.

Regular way purchases or sales are
purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention
in the marketplace.

Subsequent measurement

The subsequent measurement of financial
assets depends on their classification as follows:

Financial assets at amortized cost

Financial assets at amortized cost
are subsequently measured using the effective interest method and are subject to impairment. Gains and losses are recognized in the consolidated
statements of profit or loss when the asset is derecognized, modified or impaired.

The effective interest method is a
method of calculating the amortized cost of a financial asset and of allocating interest income and interest expense over the relevant
period. The effective interest rate is the rate that exactly discounts estimated future cash receipts and payments (including all fees
and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts)
through the expected life of the financial asset, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Financial assets at FVTPL

Financial assets at FVTPL are carried
in the consolidated statements of financial position at fair value with net changes in fair value recognized in profit or loss.

Dividend income and gain related to
disposed financial assets at FVTPL and net fair value changes on FVTPL which are derived from the Group’s ordinary course of business
are presented as revenue

The Group derecognizes a financial
asset only when the contractual rights to the cash flows from the asset expire.

On derecognition of a financial asset
measured at amortized cost, the difference between the asset’s carrying amount and the sum of the consideration received and receivable
is recognized in profit or loss.

The Group recognizes an allowance for
ECLs for financial assets at amortized cost. ECLs are based on the difference between the contractual cash flows due in accordance with
the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest
rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral