Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 216

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 216
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 financing component or for which the Group
has applied the practical expedient of not adjusting the effect of a significant financing component, the Group initially measures a
financial asset at its fair value, plus in the case of a financial asset not at fair value through profit or loss, transaction costs.
Trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient are
measured at the transaction price determined under IFRS 15 in accordance with the policies set out in Note 2.5(aa) below.

In order for a financial asset to be classified
and measured at amortized cost or fair value through other comprehensive income, it needs to give rise to cash flows that are solely payments
of principal and interest (“SPPI”) on the principal amount outstanding. Financial assets with cash flows that are not SPPI
are classified and measured at fair value through profit or loss, irrespective of the business model.

The Group’s business model for managing
financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether
cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and
measured at amortized cost are held within a business model with the objective to hold financial assets in order to collect contractual
cash flows, while financial assets classified and measured at fair value through other comprehensive income are held within a business
model with the objective of both holding to collect contractual cash flows and selling. Financial assets which are not held within the
aforementioned business models are classified and measured at fair value through profit or loss.

Purchases or sales of financial assets
that require delivery of assets within the period generally established by regulation or convention in the marketplace are recognised
on the trade date, that is, the date that the Group commits to purchase or sell the asset.

Subsequent measurement

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

Financial assets at amortized cost (debt instruments)

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 statement
of profit or loss when the asset is derecognized, modified or impaired.

Financial assets at fair value through other comprehensive income (debt instruments)

For debt investments at fair value through
other comprehensive income, interest income, foreign exchange revaluation and impairment losses or reversals are recognized in the statement
of profit or loss and