Company: TGE
Filing Date: 2025-11-21
Form Type: POS AM
Source: 0001213900-25-113604
Chunk: 273

Company: Generation Essentials Group
Filing Date: 2025-11-21
Form: POS AM
Chunk 273
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’s functional currency. Each entity in the Group determines its own functional currency and items included
in the financial statements of each entity are measured using that functional currency. Foreign currency transactions recorded by the
entities in the Group are initially recorded using their respective functional currency rates prevailing at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency rates of exchange ruling
at the end of each reporting period. Differences arising on settlement or translation of monetary items are recognized in profit or loss.

<div align='center'>F-44

THE GENERATION ESSENTIALS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F OR THE YEARS ENDED DECEMBER 31, 2022, 2023 AND 2024</div>

| 2. | APPLICATION OF INTERNATIONAL FINANCIAL REPORTING 
 STANDARDS (cont.)                                |

Non-monetary items that are measured
in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary
items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured.
The gain or loss arising on translation of a non-monetary item measured at fair value is treated in line with the recognition of the
gain or loss on change in fair value of the item (i.e., translation difference on the item whose fair value gain or loss is recognized
in other comprehensive income or profit or loss is also recognized in other comprehensive income or profit or loss, respectively).

In determining the exchange rate on
initial recognition of the related asset, expense or income on the derecognition of a non-monetary asset or non-monetary liability relating
to an advance consideration, the date of initial transaction is the date on which the Group initially recognizes the non-monetary asset
or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, the Group determines
the transaction date for each payment or receipt of the advance consideration.

For the purpose of presenting consolidated
financial statements, the assets and liabilities of the Group’s foreign operations are translated at exchange rates prevailing
on the reporting date. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate
significantly during that period, in which case the exchange rates at the date of transactions are used. Exchange differences arising,
if any, are recognized in other comprehensive income and accumulated in an exchange reserve