Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 215

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 215
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 asset’s recoverable amount is the higher of the asset’s or
cash-generating unit’s value in use and its fair value less costs of disposal, and is determined for an individual asset, unless
the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case the
recoverable amount is determined for the cash-generating unit to which the asset belongs. In testing a cash-generating unit for impairment,
a portion of the carrying amount of a corporate asset (e.g., a headquarters building) is allocated to an individual cash-generating unit
if it can be allocated on a reasonable and consistent basis or, otherwise, to the smallest group of cash-generating units.

An impairment loss is recognized only if
the carrying amount of an asset exceeds its recoverable amount. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. An impairment loss is charged to the statement of profit or loss in the period in which it arises in those expense
categories consistent with the function of the impaired asset.

An assessment is made at the end of each
reporting period as to whether there is an indication that previously recognized impairment losses may no longer exist or may have decreased.
If such an indication exists, the recoverable amount is estimated. A previously recognized impairment loss of an asset other than goodwill
is reversed only if there has been a change in the estimates used to determine the recoverable amount of that asset, but not to an amount
higher than the carrying amount that would have been determined (net of any depreciation/amortization) had no impairment loss been recognized
for the asset in prior years. A reversal of such an impairment loss is credited to the statement of profit or loss in the period in which
it arises.

| F-20 |

| 2.5 |     | MATERIAL ACCOUNTING  
 POLICIES (CONTINUED) |

| (i) | Investments and other financial assets |

Initial recognition and measurement

Financial assets are classified, at initial
recognition, as subsequently measured at amortized cost, fair value through other comprehensive income, and fair value through profit
or loss.

The classification of financial assets
at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model
for managing them. With the exception of trade receivables that do not contain a significant