Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 139

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 139
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 impairment loss. Construction in progress is classified to the appropriate category of property, plant and equipment when
completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets
are ready for their intended use.

An item of property, plant and equipment is derecognized
upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising
on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is
included in profit or loss in the period in which the item is de-recognized.

Inventories

Inventories are stated at the lower of cost and
net realizable value. Costs of inventories are determined using the weighted average method. Net realizable value represents the estimated
selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

Financial instruments - investments and
other financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition,
as subsequently measured at amortized cost, fair value through other comprehensive income, and fair value through profit or loss.

The classification of financial assets at initial
recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing
them. With the exception of trade receivables that do not contain a significant financing component or for which the Group has applied
the practical expedient of not adjusting the effect of a significant financing component, the Group initially measures a financial asset
at its fair value, plus in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables
that do not contain a significant financing component or for which the Group has applied the practical expedient are measured at the transaction
price determined under IFRS 15 in accordance with the policies set out for “ Revenue recognition”.

In order for a financial asset to be classified
and measured at amortized cost or fair value through other comprehensive income, it needs to give rise to cash flows that are solely payments
of principal and interest (“ SPPI”) on the principal amount outstanding.

The Group’s business model for managing
financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether
cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

All regular way purchases and sales of financial
assets are