Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 226

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 226
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When the effect of discounting is material,
the amount recognized for a provision is the present value at the end of the reporting period of the future expenditures expected to be
required to settle the obligation. The increase in the discounted present value amount arising from the passage of time is included in
finance costs in the statement of profit or loss.

| (x) | Dividends |

Final dividends are recognized as a liability
when they are approved by the Directors in a general meeting.

Interim dividends are
simultaneously proposed and declared, because the Company’s memorandum and articles of association grant the Directors the authority
to declare interim dividends. Consequently, interim dividends are recognized immediately as a liability when they are proposed and declared.

| F-28 |

| 2.5 |     | MATERIAL ACCOUNTING  
 POLICIES (CONTINUED) |

| (y) | Government grants |

Government grants are recognized at their
fair value where there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. When
the grant relates to an expense item, it is recognized as income on a systematic basis over the period in which the costs, for which it
is intended to compensate, are expensed.

| (z) | Service concession arrangement – Discontinued Operations |

The Group has entered into Public-Private
Partnership (“PPP”) projects under Build-Operate-Transfer (“BOT”) arrangements with the governmental entity of
Guangdong Shaoguan Wujiang District. The BOT arrangement is a service concession arrangement under IFRIC 12 Service Concession Arrangements,
because the local government controls and regulates the services that the Group must provide with the infrastructure at a pre-determined
service charge and, upon expiration of concession right agreements, the infrastructure has to be transferred to the local government at
nil consideration.

Under this service concession
arrangement:

- the grantor controls
or regulates the services the Group must provide with the infrastructure, to whom it must provide them, and at what price; and

- the grantor controls,
through ownership, beneficial entitlement or otherwise, any significant residual interest in the infrastructure at the end of the term
of the arrangement, or the infrastructure is used for its entire useful life under the arrangements, or both the Group’s practical
ability to sell or pledge the infrastructure is restricted and continuing right of use of the infrastructure is given to the grantor throughout
the period of the arrangements.

A financial asset (receivable under a service
concession arrangement