Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 228

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 228
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with a financial liability or non-financial host, is separated from the host and accounted for as a separate derivative if the economic
characteristics and risks are not closely related to the host; a separate instrument with the same terms as the embedded derivative would
meet the definition of a derivative; and the hybrid contract is not measured at fair value through profit or loss. Embedded derivatives
are measured at fair value with changes in fair value recognized in the income statement. Reassessment only occurs if there is either
a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification
of a financial asset out of the fair value through profit or loss category.

A derivative embedded within a hybrid
contract containing a financial asset host is not accounted for separately. The financial asset host together with the embedded derivative
is required to be classified in its entirety as a financial asset at fair value through profit or loss.

Financial instruments - impairment
of financial assets

The Group recognizes an allowance for
ECLs for all debt instruments not held at fair value through profit or loss. 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 to the contractual terms.

General approach

ECLs are recognized in two stages. For
credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit
losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which
there has 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).

F-19

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