Company: AVCRF
Filing Date: 2025-06-16
Form Type: 20-F
Source: 0001641172-25-015266
Chunk: 67

Company: Avricore Health Inc.
Filing Date: 2025-06-16
Form: 20-F
Item: Item 19
Chunk 67
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 Dollars)

  BASIS                        
  OF PRESENTATION (continued)  
 ───────────────────────────────

  Basis             
  of consolidation  
 ────────────────────

The
consolidated financial statements include the assets, liabilities and results of operations of all entities controlled by the Company.
Inter-company balances and transactions, including unrealized income and expenses arising from inter-company transactions, are eliminated
in preparing the Company’s consolidated financial statements. Where control of an entity is obtained during a financial year, its
results are included in the consolidated statements of operations and comprehensive loss from the date on which control commences. Where
control of an entity ceases during a financial year, its results are included for that part of the year during which control exists.

These
consolidated financial statements include the accounts of the Company and its controlled wholly owned Canadian subsidiary HealthTab™
Inc and HealthTab Inc.’s wholly owned United Kingdom subsidiary HealthTab™ Ltd.

  SUMMARY                          
  OF MATERIAL ACCOUNTING POLICIES  
 ───────────────────────────────────

  Revenue      
  recognition  
 ───────────────

The
Company’s revenues are generated from operating leases of the POCT system and sale of testing panels. Revenue comprises the fair
value of the consideration received or receivable and is shown net of tax and discounts.

The
Company recognizes revenue to depict the transfer of goods and services to clients in an amount that reflects the consideration to which
the Company expects to be entitled in exchange for those goods and services by applying the following steps:

  Identify                                                              
  Identify                                                              
  Determine                                                             
  Allocate                                                              
  Recognize                                                             

Revenue
may be earned over time as the performance obligations are satisfied or at a point in time which is when the entity has earned a right
to payment, the customer has possession of the asset and the related significant risks and rewards of ownership, and the customer has
accepted the asset.

The
Company’s arrangements with customers can include multiple performance obligations. When contracts involve various performance
obligations, the Company evaluates whether each performance obligation is distinct and should be accounted for as a separate unit of
accounting under IFRS 15, Revenue from Contracts with Customers.

Avricore
Health Inc.

Notes
to the Consolidated Financial Statements

For
the years ended December 31, 2024, 2023 and 2022

(Expressed
in Canadian Dollars)

  SUMMARY                                      
  OF MATERIAL ACCOUNTING POLICIES (continued)  
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