Company: AVCRF
Filing Date: 2025-06-16
Form Type: 20-F
Source: 0001641172-25-015266
Chunk: 72

Company: Avricore Health Inc.
Filing Date: 2025-06-16
Form: 20-F
Item: Item 19
Chunk 72
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 it is probable that future taxable profits will be available against which the asset
can be utilized. To the extent that the Company does not consider it probable that a deferred tax asset will be recovered, the deferred
tax asset is reduced. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax
assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends
to settle its current tax assets and liabilities on a net basis.

  Financial    
  Instruments  
 ───────────────

Classification

The
Company classifies its financial instruments in the following categories: at fair value through profit and loss (“ FVTPL”),
at fair value through other comprehensive income (loss) (“ FVTOCI”), or at amortized cost. The Company determines the classification
of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for
managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified
as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument
basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured
at FVTPL (such as instruments held for trading or derivatives) or the Company has opted to measure them at FVTPL.

The
Company has classified its cash and cash equivalents as FVTPL and term deposit, accounts receivable, accounts payable and loans payable
as amortized cost.

Measurement

Financial
assets and liabilities at amortized cost

Financial
assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently
carried at amortized cost less any impairment.

Financial
assets and liabilities at FVTPL

Financial
assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in profit or loss. Realized
and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included
in the profit or loss in the period in which they arise.

Financial
assets at FVTOCI

Investments
in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently they are measured at fair
value, with gains and losses arising