Company: TGE
Filing Date: 2025-12-03
Form Type: 424B3
Source: 0001213900-25-117807
Chunk: 271

Company: Generation Essentials Group
Filing Date: 2025-12-03
Form: 424B3
Chunk 271
---
 OR THE YEARS ENDED DECEMBER 31, 2022, 2023 AND 2024</div>

| 2. | APPLICATION OF INTERNATIONAL FINANCIAL REPORTING 
 STANDARDS (cont.)                                |

For collective assessment, the Group
takes into consideration the following characteristics when formulating the grouping:

| ● | Past-due status; |

| ● | Nature, size and         
 industry of debtors; and |

| ● | External credit          
 ratings where available. |

The grouping is regularly reviewed
by management to ensure the constituents of each group continue to share similar credit risk characteristics.

Interest income is calculated based
on the gross carrying amount of the financial asset unless the financial asset is credit-impaired, in which case interest income is calculated
based on amortized cost of the financial asset.

The Group recognizes an impairment
gain or loss in profit or loss for all financial instruments by adjusting their carrying amount, with the exception of accounts receivable
from contracts with customers where the corresponding adjustment is recognized through a loss allowance account.

Classification as debt or equity

Debt and equity instruments are classified
as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of
a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract
that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the
Company are recognized at the proceeds received, net of direct issue costs.

Financial liabilities at amortized cost

Financial liabilities including accounts
payable, borrowings, other payables and accruals, amounts due to subsidiaries’ non-controlling shareholders and amount due to ultimate
holding company are subsequently measured at amortized cost, using the effective interest method.

The Group derecognizes financial liabilities
when, and only when, the Group’s obligations are discharged, cancelled or have expired. The difference between the carrying amount
of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss.

Derivative financial instruments

Derivatives are initially recognised
at fair value at the date when derivative contracts are entered into and are subsequently remeasured to their fair value at the end of
the reporting period. The resulting gain or loss is recognised in profit or loss.

<div align='center'>F-40

THE GENERATION ESSENTIALS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F OR THE YEARS ENDED DE