Company: TGE
Filing Date: 2025-03-21
Form Type: DRS/A
Source: 0001013762-25-001106
Chunk: 480

Company: Generation Essentials Group
Filing Date: 2025-03-21
Form: DRS/A
Chunk 480
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 FINANCIAL REPORTING STANDARDS (cont.) Financial assets at amortized cost are subject to impairment under the general approach and they are classified within the following stages for measurement of ECLs except for accounts receivable arising from IFRS 15 which apply the simplified approach as detailed below. Stage 1Financial assets for which credit risk has not increased significantly since initial recognition and for which the loss allowance is measured at an amount equal to 12 -monthECLs Stage 2Financial assets for which credit risk has increased significantly since initial recognition but that are not credit -impairedfinancial assets and for which the loss allowance is measured at an amount equal to lifetime ECLs Stage 3Financial assets that are credit -impairedat the reporting date (but that are not purchased or originated credit -impaired) and for which the loss allowance is measured at an amount equal to lifetime ECLs Simplified approach For accounts receivable arising from IFRS 15 that do not contain a significant financing component or when the Group applies the practical expedient of not adjusting the effect of a significant financing component, the Group applies the simplified approach in calculating ECLs. Under the simplified approach, the Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. Significant increase in credit risk In assessing whether the credit risk has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial instrument As of the reporting date with the risk of a default occurring on the financial instrument As of the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward -lookinginformation that is available without undue cost or effort. In particular, the following information is taken into account when assessing whether credit risk has increased significantly: •an actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating; •significant deterioration in external market indicators of credit risk, e.g. a significant increase in the credit spread, the credit default swap prices for the debtor; •existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the debtor’s ability to meet its debt obligations; •an actual or expected significant deterioration in the operating results of the debtor; •an actual or expected significant adverse change in the regulatory, economic, or technological environment of the debtor that results in a significant decrease in the debtor’s ability to