Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 156

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 19
Chunk 156
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 are all entities over which the Company
has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with
the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date that control ceases.
Intercompany balances and transactions, including income and expenses on transactions between the Company’s subsidiaries, are eliminated.
The accounting policies applied by the subsidiaries are consistent with the accounting policies adopted by the Company.

Translation of foreign currency balances
and transactions

Functional and presentation currency

Items included in the financial statements of
each of the Company’s subsidiaries are measured using the currency of the primary economic environment in which the subsidiary operates
(the “ Functional Currency”) The consolidated financial statements of the Company are presented in U. S. dollars, which is the
Company’s and the Company’s subsidiaries Functional Currency.

Transactions and balances

Transactions made in a currency which is different
from the functional currency are translated into the Functional Currency using the exchange rates prevailing at the dates of the transactions
or valuations where the items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation at the end-of-year exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized
in profit or loss as finance income (expense).

Trade receivables

The trade receivables balance represents the unconditional
right to consideration because only the passage of time is required before the payment is due from Company customers for services rendered
in the ordinary course of business. If collection is expected within one year or less, trade receivables are classified as current assets.
If not, trade receivables are presented as non-current assets. Trade receivables are initially recognized based on their transaction price,
and subsequently measured at amortized cost using the effective interest method, less a provision for expected credit losses.

The Company measures the loss allowance for expected
credit losses on trade receivables that are within the scope of IFRS 15, “ Revenue from Contracts with Customers” (“ IFRS
15”) and on financial assets for which the credit risk has increased significantly since initial recognition based on lifetime expected
credit losses. Otherwise, the Company measures the loss allowance at an amount equal to 12-month expected credit losses at the current
reporting date.

Debt investments at