Company: SVREW
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001013762-25-001028
Chunk: 155

Company: SaverOne 2014 Ltd.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 19
Chunk 155
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 exception, whereby such
leases are accounted for as an expense on a straight-line basis over term of the lease.

F-16

SAVERONE
2014 LTD.

NOTES
TO THE FINANCIAL STATEMENTS (CONT.)

(New
Israeli Shekels in thousands, except per share and share data)

Note
2 - Material accounting policies (Cont.)

  Financial assets  

The
classification of financial assets is based on the Company’s business model used for the management of financial assets and on
the forecasted cash flow characteristics of the financial asset.

Investments
in debt instruments measured at amortized cost

Debt
instruments measured at amortized cost are debt instruments that meet the following two cumulative conditions: the Company’s business
model is to hold and collect the contractual cash flows and, the contractual characteristics of the financial asset define cash flows
relating to payments of principal and interest, at specified dates on the principal outstanding. These are measured upon initial recognition
at their fair value, plus transaction costs. Subsequent to initial recognition, such assets are recognized at amortized cost, on the
basis of the effective interest method, net of credit losses.

  Impairment of financial assets  

The
Company recognizes a provision for loss under the “ Expected Credit Loss Recognition Model” for financial debt assets that
are not measured at fair value through profit and loss, distinguishing between the following two situations:

  Financial                                                                                   
  instruments that there has not been a significant increase in their credit risk since the   
  date of their original recognition - the provision shall take into account expected credit  
  losses in 12-months period, or                                                              
 ──────────────────────────────────────────────────────────────────────────────────────────────

  Financial                                                                                     

For
purpose of implementing the above principle, the Company assesses at each reporting date whether credit risk of the financial instrument
increased significantly from initial recognition date and, as part of the above, use is made of reasonable and established information
that can be obtained without exaggerated cost or effort.

The
amount of the forecasted credit losses is recognized in profit and loss under “general and administrative expenses”.

F-17

SAVERONE
2014 LTD.

NOTES
TO THE FINANCIAL STATEMENTS (CONT.)

(New
Israeli Shekels in thousands, except per share and share data)

Note
2 - Material accounting policies (Cont.)

  Financial liabilities  

Financial
liabilities are recognized in the statement of financial position if and only if the Company becomes a