Company: TGE
Filing Date: 2025-11-21
Form Type: POS AM
Source: 0001213900-25-113604
Chunk: 272

Company: Generation Essentials Group
Filing Date: 2025-11-21
Form: POS AM
Chunk 272
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ES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F OR THE YEARS ENDED DECEMBER 31, 2022, 2023 AND 2024</div>

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

Definition of a lease

A contract is, or contains, a lease
if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Group assesses whether a contract
is or contains a lease based on the definition under IFRS 16 Leases at inception, modification date or acquisition date, as appropriate.
Such contract will not be reassessed unless the terms and conditions of the contract are subsequently changed.

The Group as a lessee

Allocation of consideration to components of a contract

For a contract that contains a lease
component and one or more additional lease or non-lease components, the Group allocates the consideration in the contract to each lease
component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease
components. The Group applies practical expedient not to separate non-lease components from lease component, and instead account for
the lease component and any associated non-lease components as a single lease component.

Short-term leases

The Group applies the short-term lease
recognition exemption to leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase
option. Lease payments on short-term leases are recognized as expense on a straight-line basis or another systematic basis over the lease
term.

Right-of-use assets

The cost of right-of-use asset includes
the amount of the initial measurement lease liability.

Right-of-use assets are depreciated
on a straight-line basis over the shorter of its estimated useful life and the lease term.

Lease liabilities

At the commencement date of a lease,
the Group recognizes and measures the lease liability at the present value of lease payments that are unpaid at that date. In calculating
the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate
implicit in the lease is not readily determinable.

The lease payments include fixed lease
payments (including in-substance fixed payments), less any lease incentives.

After the commencement date, lease
liabilities are adjusted by interest accretion and lease payments.

These financial statements are presented
in US$, which is the Company