Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 141

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 141
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 are not subject to impairment assessment.

Financial assets at fair value through profit
or loss

The Group may, at initial recognition, irrevocably
designate a financial asset as measured at fair value through profit or loss if doing so eliminates or significantly reduces a measurement
or recognition inconsistency (sometimes referred to as an ‘accounting mismatch’) that would otherwise arise from measuring
assets or liabilities or recognizing the gains and losses on them on different bases.

Financial assets at fair value through profit
or loss are carried in the statement of financial position at fair value with net changes in fair value recognized in the income statement.
This category includes derivative financial instruments and structured bank deposits.

A derivative embedded in a hybrid contract, with
a financial liability or non-financial host, is separated from the host and accounted for as a separate derivative if the economic characteristics
and risks are not closely related to the host; a separate instrument with the same terms as the embedded derivative would meet the definition
of a derivative; and the hybrid contract is not measured at fair value through profit or loss. Embedded derivatives are measured at fair
value with changes in fair value recognized in the income statement. Reassessment only occurs if there is either a change in the terms
of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification of a financial asset
out of the fair value through profit or loss category.

A derivative embedded within a hybrid contract
containing a financial asset host is not accounted for separately. The financial asset host together with the embedded derivative is required
to be classified in its entirety as a financial asset at fair value through profit or loss.

Financial instruments - impairment of
financial assets

The Group recognizes an allowance for ECLs for
all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows
due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original
effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements
that are integral to the contractual terms.

General approach

ECLs are recognized in two stages. For credit
exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses
that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there
has