Company: SLMT
Filing Date: 2025-05-28
Form Type: 20-F/A
Source: 0001213900-25-048029
Chunk: 47

Company: Brera Holdings PLC
Filing Date: 2025-05-28
Form: 20-F/A
Chunk 47
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 by applying the effective interest rate to the gross carrying
amount of a financial asset.

Impairment of financial assets subject to impairment
assessment under IFRS 9.

The Company performs impairment assessment under
ECL model on financial assets (including trade and other receivables and loan receivables) which are subject to impairment assessment
under IFRS 9. The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition.

Lifetime ECL represents the ECL that will result
from all possible default events over the expected life of the relevant instrument. In contrast, 12-month ECL (“12m ECL”)
represents the portion of lifetime ECL that is expected to result from default events that are possible within 12 months after the reporting
date. Assessments are done based on the Company’s historical credit loss experience, adjusted for factors that are specific to the
debtors, general economic conditions and an assessment of both the current conditions at the reporting date as well as the forecast of
future conditions.

The Company always recognizes lifetime ECL for
trade receivables. For all other instruments, the Company measures the loss allowance equal to 12m ECL, unless there has been a significant
increase in credit risk since initial recognition, in which case the Company recognizes lifetime ECL. The assessment of whether lifetime
ECL should be recognized is based on significant increases in the likelihood or risk of a default occurring since initial recognition.

(ii) Significant increase in credit risk

In assessing whether the credit risk has increased
significantly since initial recognition, the Company compares the risk of a default occurring on the financial instrument as at the reporting
date with the risk of a default occurring on the financial instrument as at the date of initial recognition. In making this assessment,
the Company considers both quantitative and qualitative information that is reasonable and supportable, including historical experience
and forward-looking information that is available without undue cost or effort.

In particular, the following information is considered
when assessing whether credit risk has increased significantly:

| ● | an actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating; |

| ● | significant deterioration in external market indicators of credit risk, e.g. a significant increase in the credit spread, the credit default swap prices for the debtor; |

| ● | existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the debtor’s ability to meet its debt