Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 138

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 138
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, the tax effect is included in the accounting for the business combination.

Leasing

IFRS 16 Leases requires lessees to recognize assets
and liabilities for most leases based on a ‘right-of-use model’ which reflects that, at the commencement date, a lessee has
a financial obligation to make lease payments to the lessor for its right to use the underlying asset during the lease term. The lessor
conveys that right to use the underlying asset at lease commencement, which is the time when it makes the underlying asset available for
use by the lessee.

IFRS 16 defines a lease term as the non-cancellable
period for which the lessee has the right to use an underlying asset including optional periods when an entity is reasonably certain to
exercise an option to extend (or not to terminate) a lease.

Under IFRS 16 lessees may also elect not to recognize
assets and liabilities for leases with a lease term of 12 months or less. In such cases a lessee recognizes the lease payments in profit
or loss on a straight-line basis over the lease term. The exemption is required to be applied by class of underlying assets. Lessees can
also make an election for leases for which the underlying asset is of low value. This election can be made on a lease-by-lease basis.
For leases where the Group is the lessee, the lease term is either cancelable or no longer than 12 months, so the Group has elected not
to record the leased assets.

Lessor accounting under IFRS 16 is substantially
unchanged from IAS 17. Lessors continue to classify leases as either operating or finance leases using similar principles as in IAS 17.
IFRS 16 did not have any significant impact on leases where the Group is the lessor.

Property, plant and equipment

Property, plant and equipment (“ PPE”)
including buildings held for use in the production or supply of goods or services, or for administrative purposes other than construction
in progress are stated at cost less subsequent accumulated depreciation and accumulated impairment losses.

Depreciation is provided to write off the cost
of items of property, plant and equipment other than construction in progress over their estimated useful lives and after taking into
account of their estimated residual value, using the straight-line method.

Construction in progress includes property, plant
and equipment in the course of construction for production or for its own use purposes. Construction in progress is carried at cost less
any recognized