Company: AVCRF
Filing Date: 2025-06-16
Form Type: 20-F
Source: 0001641172-25-015266
Chunk: 73

Company: Avricore Health Inc.
Filing Date: 2025-06-16
Form: 20-F
Item: Item 19
Chunk 73
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 from changes in fair value recognized in other comprehensive income (loss) as they arise.

Impairment
of financial assets at amortized cost

An
‘expected credit loss’ impairment model applies which requires a loss allowance to be recognized based on expected credit
losses. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized
for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to estimated present
value of the future cash flows associated with the asset, discounted at the financial asset’s original effective interest rate,
either directly or through the use of an allowance account and the resulting loss is recognized in profit or loss for the period. In
a subsequent period, if the amount of the impairment loss related to financial assets measured at amortized cost decreases, the previously
recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the
impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized.

Avricore
Health Inc.

Notes
to the Consolidated Financial Statements

For
the years ended December 31, 2024, 2023 and 2022

(Expressed
in Canadian Dollars)

  SUMMARY                                      
  OF MATERIAL ACCOUNTING POLICIES (continued)  
 ───────────────────────────────────────────────

  Financial                
  Instruments (continued)  
 ───────────────────────────

Derecognition

Financial
assets

The
Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers
the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Gains and losses on derecognition
are generally recognized in profit or loss.

  Impairment                          
  of equipment and intangible assets  
 ──────────────────────────────────────

At
the end of each reporting period, if there are indicators of impairment, the Company reviews the carrying amounts of its equipment and
intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. Individual assets
are grouped together as a cash generating unit for impairment assessment purposes at the lowest level at which there are identifiable
cash flows that are independent from other group assets. The Company has one cash generating unit, the HealthTab system, comprised of
system software, system analyzers and system hardware.

If
any