Company: SLMT
Filing Date: 2025-05-28
Form Type: 20-F/A
Source: 0001213900-25-048029
Chunk: 49

Company: Brera Holdings PLC
Filing Date: 2025-05-28
Form: 20-F/A
Chunk 49
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 made are recognized in profit or loss. (vi) Measurement and recognition of expected credit losses The measurement of expected credit losses is a function of the probability of default, loss given default (i.e., the magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given default is based on historical data adjusted by forward-looking information as described above. As for the exposure at default, for financial assets, this is represented by the assets’ gross carrying amount at the reporting date. For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest rate. If the Company has measured the loss allowance for a financial instrument at an amount equal to lifetime ECL in the previous reporting period but determines at the current reporting date that the conditions for lifetime ECL are no longer met, the Company measures the loss allowance at an amount equal to 12-month ECL at the current reporting date. The Company recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account. F-20

Derecognition of Financial Assets

The Company derecognizes a financial asset only
when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the
risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks
and rewards of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the asset and
an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of
a transferred financial asset, the Company continues to recognize the financial asset and a collateralized borrowing for the proceeds
received.

On derecognition of a financial asset measured
at amortized cost, the difference between the asset’s carrying amount and the sum of the consideration received is recognized in
profit or loss.

Financial Liabilities and Equity

Classification as Debt or Equity

Financial liabilities and equity instruments issued
by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial
liability and an equity instrument.

Equity Instruments

An equity instrument is any contract that evidences
a residual interest in the assets of the Company after deducting all of