Company: BLRX
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001178913-25-001123
Chunk: 335

Company: BioLineRx Ltd.
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 335
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2 - MATERIAL ACCOUNTING POLICIES

  Basis of presentation  

The Company’s consolidated financial statements as of December 31, 2023 and 2024, and for each of the three years in the period ended December 31, 2024, have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“ IASB”) (hereinafter “ IFRS”). The materialaccounting policies described below have been applied on a consistent basis for all years presented, unless noted otherwise (see Note 2n).

The consolidated financial statements have been prepared on the basis of historical cost, subject to adjustment of warrant liabilities to their fair value through profit or loss.

The preparation of financial statements in conformity with IFRS requires management tomake estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, equity and expenses, as well as the related disclosures of contingent assets and liabilities, in the process of applying the Company’s accounting policies.

Areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are materialto the consolidated financial statements, are disclosed in Note 4. Actual results may differ materially from estimates and assumptions used by the Company’s management.

  Functional and reporting currency  

The functional and reporting currency in these financial statements is the U. S. dollar (“dollar”, “ USD” or “$”), which is the primary currency of the economic environment in which the Company operates. Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year-end exchange rates are generally recognized in profit or loss.

  Inventory  

Inventory is measured at the lower of cost or net realizable value. The cost of inventories includes purchase costs, packaging and labeling costs, and other costs incurred in bringing the inventories to their present location and condition. Net realizable value is the estimated selling price of the inventories in the ordinary course of business, less the estimated costs necessary to make the sale. Pre-launch inventory is held as an asset when there is a high probability of regulatory approval for the product (see Note 1a). Before that point, a provision is made against the value to its recoverable amount; the provision is then reversed at the point when regulatory approval is received.

Inventory is written down for estimated obsolescence based upon management assumptions about future demand, expiration due date and