Company: TGE
Filing Date: 2025-11-21
Form Type: POS AM
Source: 0001213900-25-113604
Chunk: 254

Company: Generation Essentials Group
Filing Date: 2025-11-21
Form: POS AM
Chunk 254
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 2. | APPLICATION OF INTERNATIONAL FINANCIAL REPORTING 
 STANDARDS (cont.)                                |

The Group reassesses whether or not
it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control described
above.

The financial statements of the subsidiaries
are prepared for the same reporting period as the Company, using consistent accounting policies. The results of subsidiaries are consolidated
from the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases.

Profit or loss and each item of other
comprehensive income, if any, is attributed to the owners of the parent of the Group and to the non-controlling interests, even if this
results in the non-controlling interests having a deficit balance. All intra-group assets and liabilities, equity, income, expenses and
cash flows relating to transactions among members of the Group are eliminated in full on combination.

Non-controlling interests in subsidiaries
are presented separately from the Group’s equity therein, which represent present ownership interests entitling their holders to
a proportionate share of net assets of the relevant subsidiaries upon liquidation.

’

Changes in the Group’s interests
in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying
amounts of the Group’s relevant components of equity and the non-controlling interests are adjusted to reflect the changes in their
relative interests in the subsidiaries, including re-attribution of relevant reserves between the Group and the non-controlling interests
according to the Group’s and the non-controlling interests’ proportionate interests.

Any difference between the amount by
which the non-controlling interests are adjusted, and the fair value of the consideration paid or received is recognized directly in
equity and attributed to owners of the Company.

A business is an integrated set of
activities and assets which includes an input and a substantive process that together significantly contribute to the ability to create
outputs. The acquired processes are considered substantive if they are critical to the ability to continue producing outputs, including
an organized workforce with the necessary skills, knowledge, or experience to perform the related processes or they significantly contribute
to the ability to continue producing outputs and are considered unique or scarce or cannot be replaced without significant cost, effort,
or delay in the ability to continue producing outputs.

Acquisitions of businesses, other than
business combination under common control, are accounted for using the acquisition method. The consideration transferred in a business
combination is measured