Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 228

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 228
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continued Operations |

Revenue from contracts with customers

Revenue from contracts
with customers is recognized when control of goods or services is transferred to the customers at an amount that reflects the consideration
to which the Group expects to be entitled in exchange for those goods or services.

When the consideration
in a contract includes a variable amount, the amount of consideration is estimated to be that to which the Group will be entitled in exchange
for transferring the goods or services to the customer. The variable consideration is estimated at contract inception and constrained
until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognized will not occur when the
associated uncertainty with the variable consideration is subsequently resolved.

When the contract contains
a financing component which provides the customer with a significant benefit of financing the transfer of goods or services to the customer
for more than one year, revenue is measured at the present value of the amount receivable, discounted using the discount rate that would
be reflected in a separate financing transaction between the Group and the customer at contract inception. When the contract contains
a financing component which provides the Group with a significant financial benefit for more than one year, revenue recognized under the
contract includes the interest expense accreted on the contract liability under the effective interest method. For a contract where the
period between the payment by the customer and the transfer of the promised goods or services is one year or less, the transaction price
is not adjusted for the effects of a significant financing component, using the practical expedient in IFRS 15.

The Group satisfies a performance
obligation and recognizes revenue over time, if one of the following criteria is met:

– The customer
simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs.

– The Group’s
performance creates or enhances an asset that the customer controls as the asset is created or enhanced.

– The Group’s
performance does not create an asset with an alternate use to the Group and the Group has an enforceable right to payment for performance
completed to date.

If none of the above
conditions are met, the Group recognizes revenue at the point in time at which the performance obligation is satisfied.

The progress towards
complete satisfaction of the performance obligation is measured based on the Group’s efforts or inputs to the satisfaction of the
performance obligation, by reference to the surveyors’ assessment of work performed and the costs incurred up to the end of the
reporting period as a percentage of total estimated costs for each contract.

When the Group provides