Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 143

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 143
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 at each reporting date. The Group has established a provision matrix
that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic
environment.

For trade receivables that contain a significant
financing component and lease receivables, the Group chooses as its accounting policy to adopt the simplified approach in calculating
ECLs with policies as described above.

Financial instruments - derecognition
of financial assets

A financial asset (or, where applicable, a part
of a financial asset or part of a group of similar financial assets) is primarily derecognized (i. e., removed from the Group’s consolidated
statement of financial position) when:

  the                                                           

  the                                                                                                                                      

When the Group has transferred its rights to receive
cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risk
and rewards of ownership of the asset. When it has neither transferred nor retained substantially all the risks and rewards of the asset
nor transferred control of the asset, the Group continues to recognize the transferred asset to the extent of the Group’s continuing
involvement. In that case, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured
on a basis that reflects the rights and obligations that the Group has retained.

Continuing involvement that takes the form of
a guarantee over the transferred asset is measured at the lower of the original amount of the asset and the maximum amount of consideration
that the Group could be required to repay.

Financial instruments - financial liabilities

Initial recognition and measurement

All financial liabilities are recognized initially
at fair value and, in the case of loans and borrowings, net of directly attributable transaction costs. The Group’s financial liabilities
include trade payables, other payables, financial liabilities included in accruals and interest-bearing bank borrowings.

Subsequent measurement

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at amortized cost, using the effective interest rate method unless the effect of discounting
would be immaterial, in which case they are stated at cost. Gains and losses are recognized in the income statement when the liabilities
are derecognized as well as through the effective interest rate amortization process.

Amortized cost is calculated by taking into account
any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The effective interest
rate amort