Company: BDRX
Filing Date: 2025-01-17
Form Type: F-1
Source: 0001214659-25-000922
Chunk: 145

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-01-17
Form: F-1
Chunk 145
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 Accounting Pronouncements

See
Note 1 to our consolidated financial statements included elsewhere in this report for recently adopted accounting pronouncements and recently
issued accounting pronouncements not yet adopted as of the dates of the statement of financial position included in this report.

Quantitative and Qualitative Disclosures about Market Risk

We are exposed to a variety
of financial risks, including, but not limited to, market risk (including foreign exchange and interest rate risks), credit risks, and
liquidity risks. Our overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential
adverse effects on its financial performance.

Credit Risk

We are exposed to credit risk
from amounts due from collaborative partners and from cash and cash equivalents and deposits with banks and financial institutions. The
risk from collaborative partners is deemed to be low. For banks and financial institutions, only independently rated parties with high
credit status are accepted. We do not enter into derivatives to manage credit risk. The gross carrying amount of a financial asset is
written off (either partially or in full) to the extent that there is no realistic prospect of recovery.

We do not enter into derivatives
to manage credit risk.

Our total exposure to credit
risk is equal to the total value of the financial assets held at year end. The consolidated entity recognizes a loss allowance for expected
credit losses on financial assets which are either measured at amortized cost or fair value through other comprehensive income. The measurement
of the loss allowance depends upon the consolidated entity's assessment at the end of each reporting period as to whether the financial
instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is
available, without undue cost or effort to obtain.

Where there has not been a
significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This
represents a portion of the asset’s lifetime expected credit losses that is attributable to a default event that is possible within
the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly,
the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognized is measured
on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the
original effective interest rate. For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognized within other comprehensive income. In all other cases