Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 247

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 19
Chunk 247
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 expected life of the financial liability, or (where appropriate) a shorter period, to the amortized cost of a financial liability.

F-13

CLEARMIND
MEDICINE INC.

Notes to
the Consolidated Financial Statements

(Expressed
in United States Dollars)

  Material                         

  Income Taxes  

Current
income tax

The
tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in profit or loss because
it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable
or deductible. The Company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted
by the end of the reporting period.

Deferred
income tax

Deferred
income tax is provided using the statement of financial position method on temporary differences at the reporting date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes. The carrying amount of deferred income tax
assets is reviewed at the end of each reporting period and recognized only to the extent that it is probable that sufficient taxable
income will be available to allow all or part of the deferred income tax asset to be utilized. Deferred income tax assets and liabilities
are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on
tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred income tax assets
and deferred income tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current income
tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority.

  Foreign Currency Translation  

The
Company’s reporting currency is the United States dollar. The functional currency for the Company and its subsidiary is the currency
of the primary economic environment in which the entity operates. As of November 1, 2023, the functional currency of the Company and
its Canadian and Israeli subsidiaries is the U. S. dollar.

Transactions
denominated in currencies other than the functional currency are translated using the exchange rate in effect on the transaction date
or at the annual average rate. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange
in effect at the consolidated statement of financial position date. Non-monetary items are translated using the historical rate on the
date of the transaction. Foreign exchange gains and losses