ESGL (ESGL) 424B3 20 Dec 24 Prospectus supplement Financial data

Cover

Cover	6 Months Ended
	Jun. 30, 2024
Cover [Abstract]
Document Type	424B3
Amendment Flag	false
Entity Registrant Name	ESGL HOLDINGS LIMITED
Entity Central Index Key	0001957538

Consolidated Statement of Finan

Consolidated Statement of Financial Position - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 256,501	$ 366,761	$ 252,399
Trade and other receivables	985,951	1,032,522	815,128
Prepaid forward purchase agreement		969
Inventories	78,682	64,184	221,151
Total Current assets	1,321,134	1,464,436	1,288,678
Non-current assets
Property, plant and equipment, net	21,043,668	21,786,365	22,493,283
Intangible assets, net	2,475,974	2,381,465	1,845,912
Total Non-current assets	23,519,642	24,167,830	24,339,195
Total assets	24,840,776	25,632,266	25,627,873
Current liabilities
Trade and other payables	5,503,478	6,560,559	4,285,345
Lease liabilities	149,516	192,282	185,764
Borrowings	4,672,286	5,666,160	5,427,538
Deferred underwriting fee payable	2,153,125	2,753,125
Tax liabilities	203,020	56,540
Total Current liabilities	12,681,425	15,228,666	9,898,647
Non-current liabilities
Lease liabilities (non-current)	1,852,343	1,974,524	2,071,571
Borrowings (non-current)		112,319	371,103
Deferred tax liabilities	298,000	296,000	163,000
Total Non-current liabilities	2,150,343	2,382,843	2,605,674
Total liabilities	14,831,768	17,611,509	12,504,321
Net assets	10,009,008	8,020,757	13,123,552
EQUITY
Share capital	11,892	10,892	10,000
Accumulated losses	(100,457,352)	(99,985,928)	(5,006,590)
Other reserves	3,422,799	3,422,799	3,422,799
Share premium reserve	92,183,727	89,725,052
Exchange reserves	(123,198)	(123,198)	(460,481)
Revaluation surplus	14,971,140	14,971,140	15,157,824
Total equity	$ 10,009,008	$ 8,020,757	$ 13,123,552

Consolidated Statement of Profi

Consolidated Statement of Profit or Loss and Other Comprehensive Income - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Profit or loss [abstract]
Revenue	$ 3,487,879	$ 3,394,313	$ 6,164,173	$ 4,992,034
Other income	282,213	189,335	169,819	396,373
Cost of inventory	(78,366)	(407,291)	(977,619)	(1,093,194)
Logistics costs	(264,638)	(792,079)	(925,225)	(689,762)
Depreciation of property, plant and equipment	(781,394)	(758,519)	(1,501,809)	(1,661,403)
Amortization of intangible assets	(559,340)	(426,515)	(853,030)	(638,849)
Employee benefits expense	(1,049,897)	(639,060)	(1,364,214)	(933,124)
Finance expense	(147,128)	(158,912)	(388,717)	(246,359)
Other operating expenses	(1,212,273)	(991,526)	(2,102,392)	(1,527,827)
Listing expenses			(93,067,324)	(981,701)
Loss before income tax	(322,944)	(590,254)	(94,846,338)	(2,383,812)
Income tax expense	(148,480)	(39,000)	(133,000)	(8,000)
Net loss and comprehensive loss	$ (471,424)	$ (629,254)	(94,979,338)	(2,391,812)
Items that will not be reclassified subsequently to profit or loss:
Net (loss)/surplus on revaluation of leasehold land and buildings			(186,684)	8,016,869
Items that may be reclassified subsequently to profit or loss:
Exchange difference on revaluation of leasehold land and buildings			337,283	52,737
Total comprehensive (loss)/income			$ (94,828,739)	$ 5,677,794
Loss per share, basic	$ (0.03)	$ (0.10)	$ (14.69)	$ (0.37)
Loss per share, diluted	$ (0.03)	$ (0.10)	$ (14.69)	$ (0.37)
Weighted average number of shares, basic	14,000,514	6,378,267	6,466,527	6,378,267
Weighted average number of shares, diluted	14,000,514	6,378,267

Consolidated Statement of Chang

Consolidated Statement of Changes in Equity - USD ($)	Issued capital [member]	Revaluation reserve [member]	Exchange reserve [member]	Share premium [member]	Other reserves [member]	Share subscription [member]	Retained earnings [member]	Total
Beginning balance at Dec. 31, 2021	$ 10,000	$ 7,140,955	$ (513,218)		$ 1,822,799		$ (2,614,778)	$ 5,845,758
IfrsStatementLineItems [Line Items]
Issuance of new shares					1,600,000	5,000,000		6,600,000
Loss for the year							(2,391,812)	(2,391,812)
Less : Share subscription receivables						(5,000,000)		(5,000,000)
Net surplus on revaluation of leasehold property		8,016,869	52,737					8,069,606
Ending balance at Dec. 31, 2022	10,000	15,157,824	(460,481)		3,422,799		(5,006,590)	13,123,552
IfrsStatementLineItems [Line Items]
Issuance of new shares	3			753,587				753,590
Loss for the year							(629,254)	(629,254)
Ending balance at Jun. 30, 2023	10,003	15,157,824	(460,481)	753,587	3,422,799		(5,635,844)	13,247,888
Beginning balance at Dec. 31, 2022	10,000	15,157,824	(460,481)		3,422,799		(5,006,590)	13,123,552
IfrsStatementLineItems [Line Items]
Issuance of new shares	892			89,725,052				89,725,944
Loss for the year							(94,979,338)	(94,979,338)
Net surplus on revaluation of leasehold property		(186,684)	337,283					150,599
Ending balance at Dec. 31, 2023	10,892	14,971,140	(123,198)	89,725,052	3,422,799		(99,985,928)	8,020,757
IfrsStatementLineItems [Line Items]
Issuance of new shares	1,000			2,458,675				2,459,675
Loss for the year							(471,424)	(471,424)
Ending balance at Jun. 30, 2024	$ 11,892	$ 14,971,140	$ (123,198)	$ 92,183,727	$ 3,422,799		$ (100,457,352)	$ 10,009,008

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities
Loss before income tax	$ (322,944)	$ (590,254)	$ (94,846,338)	$ (2,383,812)
Adjustments for:
- Impairment loss on receivable				44,271
- Prepaid forward purchase agreement written-off	969
- Depreciation of property, plant and equipment	781,394	758,519	1,501,809	1,661,403
- Amortisation of intangible assets	559,340	426,515	853,030	638,849
- Interest income	(3)	(12,002)	(18,308)	(4)
- Interest expense	147,128	158,912	388,717	246,359
- Loss/(gain) on disposal of property, plant and equipment		1,795	12,852	(26,586)
- Listing expense			93,067,324
- Foreign exchange adjustment	(191,391)	312,051	256,558	3,331
Total Adjustments	974,493	1,055,536	1,215,644	183,811
Changes in operating assets and liabilties :
- Trade and other receivables	40,746	(687,016)	(210,649)	(384,221)
- Inventories	(14,498)	153,252	156,967	378,606
- Trade and other payables	(1,043,521)	167,205	1,368,648	1,791,714
- Prepaid forward purchase agreement			969
- Deferred underwriting fees payable			2,753,125
Net cash generated from operating activities	(42,780)	688,977	5,282,766	1,969,910
Cash flows from investing activities
Purchase of property, plant and equipment	(38,697)	(115,334)	(651,044)	(502,677)
Proceeds from disposal of property, plant and equipment		1,352	2,130	29,592
Additions to intangible assets	(653,849)	(633,912)	(1,388,583)	(1,011,193)
Interest received	3	12,002	18,308	4
Net cash used in investing activities	(692,543)	(735,892)	(2,019,189)	(1,484,274)
Changes from financing cash flows:
Proceeds from bank borrowings	747,197	2,246,518	3,596,071
Repayment of bank borrowings	(1,691,453)	(1,831,341)	(3,775,481)	(1,537,495)
Shares issuance	2,459,675	753,590	754,448	1,600,000
Repayment of underwriting fees	(600,000)
Settlement of Promissory Note			(3,150,000)
Repayments of lease liabilities	(143,228)	(57,718)	(185,536)	(186,397)
Interest paid	(147,128)	(158,912)	(388,717)	(246,359)
Net cash used in financing activities	625,063	952,137	(3,149,215)	(370,251)
Net increase in cash and bank balances	(110,260)	905,222	114,362	115,385
Cash and cash equivalents
Beginning of the financial year	366,761	252,399	252,399	137,014
End of the financial year	256,501	1,157,621	366,761	252,399
Beginning balance	7,945,285	8,055,976	8,055,976	8,497,789
Changes from financing cash flows:
Repayment of bank loans	(1,691,453)		(3,775,481)	(1,537,495)
Principal element of lease payments	(143,228)		(185,536)	(186,397)
Borrowing cost paid	(147,128)		(388,717)	(246,359)
Total change from financing cash flows	(1,234,612)		(753,663)	(1,970,251)
Other changes:
Exchange adjustments	(183,656)		246,025	(14,739)
Lease modification			8,230	1,296,818
Interest expenses	147,128		388,717	246,359
Total other changes	(36,528)		642,972	1,528,438
Ending balance	6,674,145		7,945,285	8,055,976
Lease liabilities [member]
Adjustments for:
- Interest expense	26,129	28,492	55,934	28,559
Changes from financing cash flows:
Proceeds from bank borrowings
Cash and cash equivalents
Beginning balance	2,166,806	2,257,335	2,257,335	1,150,764
Changes from financing cash flows:
Repayment of bank loans
Principal element of lease payments	(143,228)		(185,536)	(186,397)
Borrowing cost paid	(26,129)		(55,934)	(28,558)
Total change from financing cash flows	(169,357)		(241,470)	(214,955)
Other changes:
Exchange adjustments	(21,719)		86,777	(3,850)
Lease modification			8,230	1,296,818
Interest expenses	26,129		55,934	28,558
Total other changes	4,410		150,941	1,321,526
Ending balance	2,001,859		2,166,806	2,257,335
Long-term borrowings [member]
Changes from financing cash flows:
Proceeds from bank borrowings	747,197		3,596,071
Cash and cash equivalents
Beginning balance	5,778,479	$ 5,798,641	5,798,641	7,347,025
Changes from financing cash flows:
Repayment of bank loans	(1,691,453)		(3,775,481)	(1,537,495)
Principal element of lease payments
Borrowing cost paid	(120,999)		(332,783)	(217,801)
Total change from financing cash flows	(1,065,255)		(512,193)	(1,755,296)
Other changes:
Exchange adjustments	(161,937)		159,248	(10,889)
Lease modification
Interest expenses	120,999		332,783	217,801
Total other changes	(40,938)		492,031	206,912
Ending balance	$ 4,672,286		$ 5,778,479	$ 5,798,641

General information

General information	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
General Information
General information	1. General information ESGL Holdings Limited ESGL Holdings Limited (“ESGL” or the “Company”) was incorporated in the Cayman Islands on November 18, 2022. Following the successful completion of a business combination on August 3, 2023, ESGL listed on Nasdaq and is a publicly traded company. ESGL’s stock commenced trading August 4, 2023. ESGL’s subsidiaries are as follows: Environmental Solutions Group Holdings Limited Environmental Solutions Group Holdings Limited is a holding company incorporated under the laws of the Cayman Islands as an exempted company with limited liability on June 14, 2022. The address of its registered office is 71 Fort Street, PO Box 500, George Town, Grand Cayman, KY1-1106, Cayman Islands. As a holding company with no material operations of its own, ESGH conducts all of its operations through its operating entity incorporated in Singapore, Environmental Solutions (Asia) Pte. Ltd. Environmental Solutions Asia Holdings Limited (“ESAH”) ESAH, a wholly-owned subsidiary of the ESGH, was incorporated on June 29, 2022 and domiciled in the British Virgin Islands with its registered office at Mandar House, 3 rd Environmental Solutions (Asia) Pte. Ltd. (“ESA”) ESA was incorporated and domiciled in Singapore, with its registered office at 101 Tuas, South Avenue 2, Singapore 637226. ESA is a waste management, treatment and recycling company involved in the collection and recycling of hazardous and non-hazardous industrial waste from customers such as pharmaceutical, semiconductor, petrochemical and electroplating companies. As ESGL, ESGH, ESAH and ESA (collectively the “Group”) were under common control, the Merger constituted a reorganization under common control and are required to be retrospectively applied to the consolidated financial statements at their historical amounts. The consolidated financial statements have been prepared as if the existing corporate structure had been in existence throughout all periods. This includes a retrospective presentation for all equity related disclosures, including issued shares, which have been revised to reflect the effects of the reorganization in accordance with International Financial Reporting Standards (“IFRS”) as of June 30, 2024 and 2023.	1. General information and reorganization transactions On November 29, 2022, Genesis Unicorn Capital Corp (“GUCC”), entered into an agreement and plan of merger (the “Merger Agreement”) with ESGL Holdings Limited (“ESGL”), ESGH Merger Sub Corp (“Merger Sub”), Environmental Solutions Group Holdings Limited (“ESGH”), and Quek Leng Chuang, solely in his capacity as the shareholder representative, agent and attorney-in-fact of the shareholders (the “Shareholder Representative”). Upon the closing of the transactions contemplated by the Merger Agreement, (a) GUCC will be merged with and into ESGL (the “Reincorporation Merger”), with ESGL surviving the Reincorporation Merger, and (b) Merger Sub will be merged with and into the ESGH (the “Acquisition Merger”), with ESGH surviving the Acquisition Merger as a direct wholly owned subsidiary of ESGL (collectively, the “Merger” or the “Business Combination”). The Business Combination was successfully completed on August 3, 2023. Following which, ESGL is a publicly traded company listed on Nasdaq. ESGL’s stock commenced trading August 4, 2023. Genesis Unicorn Capital Corp GUCC was incorporated as a Delaware corporation on February 23, 2021. It is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more target businesses. ESGL Holdings Limited ESGL Holdings Limited (“ESGL” or the “Company”) was incorporated in the Cayman Islands on November 18, 2022 for the sole purpose of the Reincorporation Merger. Following the consummation of the Reincorporation Merger, GUCC will have merged with and into ESGL, with ESGL as the surviving publicly traded entity. Environmental Solutions Group Holdings Limited Environmental Solutions Group Holdings Limited (“ESGH”) is a holding company incorporated under the laws of the Cayman Islands as an exempted company with limited liability on June 14, 2022. The address of its registered office is 71 Fort Street, PO Box 500, George Town, Grand Cayman, KY1-1106, Cayman Islands. As a holding company with no material operations of its own, ESGH conducts all of its operations through its operating entity incorporated in Singapore, Environmental Solutions (Asia) Pte. Ltd. Environmental Solutions Asia Holdings Limited (“ESAH”) ESAH, a wholly-owned subsidiary of the ESGH, was incorporated on June 29, 2022 and domiciled in the British Virgin Islands with its registered office at Mandar House, 3 rd Environmental Solutions (Asia) Pte. Ltd. (“ESA”) ESA was incorporated and domiciled in Singapore, with its registered office at 101 Tuas, South Avenue 2, Singapore 637226. ESA is a waste management, treatment and recycling company involved in the collection and recycling of hazardous and non-hazardous industrial waste from customers such as pharmaceutical, semiconductor, petrochemical and electroplating companies. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 1. General information and reorganization transactions (continued) ESGH Merger Sub Corp ESGH Merger Sub Corp was incorporated under the laws of the Cayman Islands as an exempted company with limited liability on November 18, 2022 and is a wholly-owned subsidiary of ESGL formed to consummate the Business Combination. Following the consummation of the Business Combination, Merger Sub will have merged with and into ESGH, with ESGH surviving the merger as a wholly-owned subsidiary of ESGL. As ESGL, ESGH, ESAH and ESA (collectively the “Group”) were under common control, the Merger constituted a reorganization under common control and are required to be retrospectively applied to the consolidated financial statements at their historical amounts. The consolidated financial statements have been prepared as if the existing corporate structure had been in existence throughout all periods. This includes a retrospective presentation for all equity related disclosures, including issued shares, which have been revised to reflect the effects of the reorganization in accordance with International Financial Reporting Standards (“IFRS”) as of December 31, 2023 and 2022. The financial statements were authorized for issuance by the Directors on May 15, 2024. GUCC will be treated as the acquired company for accounting purposes, whereas ESGH will be treated as the accounting acquirer. Because GUCC does not meet the accounting definition of a business, the Business Combination will be treated as the equivalent of ESGH issuing stock for the net assets of GUCC, accompanied by a recapitalization. The net assets of ESGH will be stated at historical cost, with no goodwill or other intangible assets recorded, and the historical results of operations prior to the Business Combination will be those of ESGH. ESGH has been determined to be the accounting acquirer for purposes of the Business Combination based on an evaluation of the following facts and circumstances: (i) After the close of the business combination, persons affiliated with ESGH are expected to control a majority of the combined company’s board of directors; (ii) ESGH shareholders have the largest voting interest under both redemption scenarios; (iii) ESGH is the largest entity based on the entity’s operations and number of employees (iv) ESGH’s operations prior to the Business Combination will comprise the ongoing operations of the Combined Company; and (v) ESGH’s existing executive officers and senior management team will comprise the executive officers and senior management team of the Combined Company. The Business Combination, which is not within the scope of IFRS 3 (Business Combination) since GUCC does not meet the definition of a business in accordance with IFRS 3 (Business Combination), is accounted for within the scope of IFRS 2 (Share-Based Payment). Any excess of fair value of the consideration shares issued over the fair value of GUCC’s identifiable net assets acquired represents a listing fee for the service of a stock exchange listing for its shares and is expensed as incurred.

Basis of preparation

Basis of preparation	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Basis Of Preparation
Basis of preparation	2.1 Basis of preparation The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IASB”). These financial statements have been prepared on a historical cost convention, except for Prepaid forward purchase agreement and leasehold land and buildings which are measured at fair value. The preparation of financial statements in conformity with IFRS requires management to exercise its judgement in the process of applying the Group’s accounting policies. It also requires the use of certain critical accounting estimates and assumptions. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued) 2.1 Basis of preparation (continued) The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3. 2.2 Basis of Consolidation The financial statements are presented in United States Dollars (“US$”), which is the Group’s functional currency. All financial information presented in United States Dollars has been rounded to the nearest dollar, unless otherwise indicated. The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at June 30, 2024 and 2023. A subsidiary is an entity (including a structured entity), directly or indirectly, controlled by the Company. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee (i.e., existing rights that give the Company the current ability to direct the relevant activities of the investee). When the Company has, directly or indirectly, less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including:- ● Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee); ● Exposure, or rights, to variable returns from its involvement with the investee; and ● The ability to use its power over the investee to affect its returns. The financial statements of 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 Company obtains control, and continue to be consolidated until the date that such control ceases. Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Company has less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including: ● The contractual arrangement(s) with the other vote holders of the investee; ● Rights arising from other contractual arrangements; ● The Company’s voting rights and potential voting rights. The Company assesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Assets, liabilities, income, and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Company gains control until the date the Company ceases to control the subsidiary. Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the parent of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Company loses control over a subsidiary, it derecognizes the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognized in profit or loss. Any investment retained is recognized at fair value. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued) 2.3 Revenue recognition Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. Revenue is recognized when the Group satisfies a performance obligation by transferring a promised good or service to the customer, which is when the customer obtains control of the goods or services. A performance obligation may be satisfied at a point in time or over time. The amount of revenue recognized is the amount allocated to the satisfied performance obligation. Revenue from contracts with customers (a) Rendering of services Revenue from rendering of services is recognized when the entity satisfies the performance obligation at a point in time, generally when the significant acts have been completed and when transfer of control occurs, or for services that are not significant, transactions revenue is recognized as the services are provided. The Group’s primary service consists of collecting and disposing of industrial wastes for its customers. (b) Sale of goods Revenue from sale of goods is recognized at a point in time when the performance obligation is satisfied by transferring a promised good to the customer. Control of the goods is transferred to the customer, generally on delivery of the goods (in this respect, incoterms are considered). Other revenue Interest income Interest income is recognized using the effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or where appropriate, a shorter period. Contract assets The contract assets are for the Group’s rights to consideration for work completed but not billed at the reporting date on its contracts; costs incurred to obtain or fulfil a contract with a customer; and any impairment losses recognized in the reporting year. The contract assets are transferred to the receivables when the right to payment becomes unconditional. 2.4 Government grants Grants from the government are recognized as a receivable at their fair value when there is reasonable assurance that the grant will be received and the Group will comply with all the attached conditions. Government grants receivable are recognized as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis. Government grants relating to expenses are shown separately as other income. Government grants relating to non-monetary assets are deducted against the carrying amount of the non-monetary assets. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued) 2.5 Property, plant and equipment (a) Measurement (i) Property, plant and equipment Property, plant and equipment other than leasehold land and buildings are initially recognized at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses. Leasehold land and buildings are measured at fair value less accumulated depreciation and impairment losses recognized after the date of the revaluation. Valuations are performed frequently to ensure that the fair value of a revalued asset does not differ materially from its carrying amount. Any revaluation surplus is credited to the property revaluation reserve in equity, except to the extent that it reverses a revaluation decrease of the same asset previously recognized in the Statement of Profit or Loss and Other Comprehensive Income, in which case the increase is recognized in the statement of profit or loss. A revaluation deficit is recognized in the statement of profit or loss, except to the extent that it offsets an existing surplus on the same asset recognized in the asset revaluation reserve. An annual transfer from the property revaluation reserve to accumulated losses is made for the difference between depreciation based on the revalued carrying amount of the assets and depreciation based on the assets original cost. Upon disposal, any revaluation reserve relating to that particular asset being sold is transferred to retained profits. (ii) Components of costs The cost of an item of property, plant and equipment initially recognized includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. (b) Depreciation Depreciation is calculated using the straight-line method to allocate depreciable amounts over the estimated useful lives as follows: Schedule of property, plant and equipment depreciation, estimated useful lives Useful lives Leasehold land and buildings Over the lease term period ranging from 2 to 30 years Plant and equipment 3 5 Machineries 2 10 Renovation 5 Motor vehicles 10 Furniture and fittings 5 The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each reporting date. The effects of any revision are recognized in profit or loss when the changes arise. Fully depreciated property, plant and equipment are retained in the financial statements until they are no longer in use. (c) Subsequent expenditure Subsequent expenditure relating to property, plant and equipment that has already been recognized is added to the carrying amount of the asset only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repair and maintenance expenses are recognized in profit or loss when incurred. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued) 2.5 Property, plant and equipment (continued) (d) Disposal On disposal of an item of property, plant and equipment, the difference between the disposal proceeds and its carrying amount is recognized in profit or loss. 2.6 Intangible assets Intangible assets acquired separately are measured initially at cost. Following initial acquisition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in profit or loss in the year in which the expenditure is incurred. Intangible assets with finite useful lives are amortized over the estimated useful lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method are reviewed at least at each financial year-end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. Amortization is calculated using the straight-line method to allocate depreciable amounts over the estimated useful lives of the assets. The estimated useful lives are as follows: Schedule of intangible assets depreciable, estimated useful lives Useful lives Software 3 2.7 Borrowing costs Borrowing costs are recognized in profit or loss using the effective interest method. 2.8 Impairment of non-financial assets Intangible assets, property, plant and equipment and right-of-use assets are tested for impairment whenever there is any objective evidence or indication that these assets may be impaired or when annual impairment testing for an asset is required. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash inflows that are largely independent of those from other assets. If this is the case, the recoverable amount is determined for the cash-generating units (“CGU”) to which the asset belongs. If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference between the carrying amount and recoverable amount is recognized as an impairment loss in profit or loss. An impairment loss for an asset is reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. The carrying amount of this asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of accumulated depreciation) had no impairment loss been recognized for the asset in prior years. A reversal of impairment loss for an asset is credited to profit or loss in the period in which it arises. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued) 2.9 Financial assets (a) Classification and measurement The Group classifies its financial assets at amortized cost. The classification of debt instruments depends on the Group’s business model for managing the financial assets as well as the contractual terms of the cash flows of the financial assets. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. The Group reclassifies debt instruments when and only when its business model for managing those assets changes. At initial recognition At initial recognition, the Group measures a financial asset at its fair value plus, in the case of the financial assets not a fair value through profit or loss, transactions costs that are directly attributable to the acquisition of the financial asset. At subsequent measurement Debt instruments are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt instrument that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in interest income using the effective interest rate method. (b) Impairment of financial assets The Group recognizes a loss allowance for expected credit loss (“ECL”) on financial assets which are subject to impairment under IFRS 9 (including trade and other receivables). The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition. Lifetime ECL represents the ECL that will result from all possible default events over the expected life of the relevant instrument. In contrast, 12-month ECL (“12m ECL”) represents the portion of lifetime ECL that is expected to result from default events that are possible within 12 months after the reporting date. Assessments are done based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current conditions at the reporting date as well as the forecast of future conditions. The Group always recognizes lifetime ECL for trade and other receivables. The ECL on these assets are assessed individually for debtors with significant balances and/or collectively using a provision matrix with appropriate groupings. For all other instruments, the Group measures the loss allowance as equal to 12m ECL, unless there has been a significant increase in credit risk since initial recognition for which the Group recognizes lifetime ECL. The assessment of whether lifetime ECL should be recognized is based on significant increases in the likelihood or risk of a default occurring since initial recognition. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued) 2.9 Financial assets (b) Impairment of financial assets (continued) (i) Significant increase in credit risk In assessing whether the credit risk has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. In particular, the following information is taken into account when assessing whether credit risk has increased significantly: ● An actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating; ● Significant deterioration in external market indicators of credit risk, e.g. a significant increase in the credit spread, or the credit default swap prices for the debtor; ● Existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the debtor’s ability to meet its debt obligations; ● An actual or expected significant deterioration in the operating results of the debtor; ● An actual or expected significant adverse change in the regulatory, economic, or technological environment of the debtor that results in a significant decrease in the debtor’s ability to meet its debt obligations. Irrespective of the outcome of the above assessment, the Group presumes that the credit risk has increased significantly since initial recognition when contractual payments are more than 30 days past due, unless the Group has reasonable and supportable information that demonstrates otherwise. The Group regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant increase in credit risk before the amount becomes past due. (ii) Definition of default For internal credit risk management, the Group considers an event of default occurs when information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the Group, in full (without taking into account any collateral held by the Group). Irrespective of the above, the Group considers that default has occurred when a financial asset is more than 90 days past due unless the Group has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate. (iii) Credit-impaired financial assets A financial asset is credit-impaired when one or more events of default that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following events: (a) Significant financial difficulty of the issuer or the borrower; (b) A breach of contract, such as a default or past due event; (c) The lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession that the lender(s) would not otherwise consider. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued) 2.9 Financial assets (b) Impairment of financial assets (continued) (iii) Credit-impaired financial assets (continued) (d) It is becoming probable that the borrower will enter bankruptcy or other financial reorganization; or (e) The disappearance of an active market for that financial asset because of financial difficulties. (iv) Write-off policy The Group writes off a financial asset when there is information indicating that the counterparty is in severe financial difficulty and there is no realistic prospect of recovery, for example, when the counterparty has been placed under liquidation or has entered into bankruptcy proceedings, or in the case of trade receivables, when the amounts are over one year past due, whichever occurs sooner. Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account legal advice where appropriate. A write-off constitutes a derecognition event. Any subsequent recoveries are recognized in profit or loss. (v) Measurement and recognition of ECL The measurement of ECL is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default) and the exposure to default. The assessment of the probability of default and loss given default is based on historical data adjusted by forward-looking information. Estimation of ECL reflects an unbiased and probability-weighted amount that is determined with the respective risks of default representing the weights. Generally, the ECL is the difference between all contractual cash flows that are due to the Group in accordance with the contract and the cash flows that the Group expects to receive, discounted at the effective interest rate determined at initial recognition. Where ECL is measured on a collective basis or for cases where evidence at the individual instrument level may not yet be available, the financial instruments are grouped on the following basis: ● Nature of financial instruments; ● Past-due status; ● Nature, size and industry of debtors; and ● External credit ratings where available. The groups are regularly reviewed by management to ensure the constituents of each group continue to share similar credit risk characteristics. Interest income is calculated based on the gross carrying amount of the financial asset unless the financial asset is credit impaired, in which case interest income is calculated based on amortized cost of the financial asset. (c) Recognition and derecognition Regular way purchases and sales of financial assets are recognized on the trade date – the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. On disposal of a debt instrument, the difference between the carrying amount and the sale proceeds is recognized in profit or loss. Any amount previously recognized in other comprehensive income relating to that asset is reclassified to profit or loss. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued) 2.10 Financial Liabilities Borrowings are presented as current liabilities unless the Group has an unconditional right to defer settlement for at least 12 months after the reporting date, in which case they are presented as non-current liabilities. Borrowings are initially recognized at fair values (net of transaction costs) and subsequently carried at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method. Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid. They are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). Otherwise, they are presented as non-current liabilities. Trade and other payables are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest method. (a) Derecognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss. (b) Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously. 2.11 Leases When the Group is the lessee At the inception of the contract, the Group assesses if the contract contains a lease. A contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Reassessment is only required when the terms and conditions of the contract are changed. Right-of-use assets The Group recognizes a right-of-use asset and lease liability at the date at which the underlying asset is available for use. Right-of-use assets are measured at cost which comprises the initial measurement of lease liabilities adjusted for any lease payments made at or before the commencement date and lease incentive received. Any initial direct costs that would not have been incurred if the lease had not been obtained are added to the carrying amount of the right-of-use assets. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. Right-of-use assets are presented within “Property, plant and equipment”. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued) 2.11 Leases (continued) Lease liabilities The initial measurement of a lease liability is measured at the present value of the lease payments discounted using the implicit rate in the lease, if the rate can be readily determined. If that rate cannot be readily determined, the Group shall use its incremental borrowing rate. Lease payments include the following: ● Fixed payments (including in-substance fixed payments), less any lease incentives receivable; ● Variable lease payment that is based on an index or rate, initially measured using the index or rate as at the commencement date; ● Amount expected to be payable under residual value guarantees; ● The exercise price of a purchase option if it is reasonably certain the option will be exercised; and ● Payment of penalties for terminating the lease, if the lease term reflects the Group exercising that option. For a contract that contains both lease and non-lease components, the Group allocates the consideration to each lease component on the basis of the relative stand-alone price of the lease and non-lease components. The Group has elected to not separate lease and non-lease components for property leases and accounts for these as one single lease component. Lease liability is measured at amortized cost using the effective interest method. Lease liability shall be remeasured when: ● There is a change in future lease payments arising from changes in an index or rate; ● There is a change in the Group’s assessment of whether it will exercise an extension option; or ● There is modification in the scope or the consideration of the lease that was not part of the original term. Lease liability is remeasured with a corresponding adjustment to the right-of-use assets, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Group presents lease liabilities as a separate line item on the statement of financial position. Short-term and low-value leases The Group has elected to not recognize right-of-use assets and lease liabilities for short-term leases that have lease terms of 12 months or less and leases of low value. Payments relating to these leases are expensed to profit or loss on a straight-line basis over the lease term. Variable lease payments Variable lease payments that are not based on an index or a rate are not included as part of the measurement and initial recognition of the lease liability. The Group shall recognize those lease payments in profit or loss in the periods that triggered those lease payments. Lease modifications The Group accounts for a lease modification as a separate lease if: ● The modification increases the scope of the lease by adding the right to use one or more underlying assets; and ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued) 2.11 Leases (continued) ● The consideration for the leases increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract. For a lease modification that is not accounted for as a separate lease, the Group remeasures the lease liability based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification. The Group accounts for the remeasurement of lease liabilities by making corresponding adjustments to the relevant right-of-use asset. When the modified contract contains a lease component and one or more additional lease or non-lease components, the Group allocates the consideration in the modified contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components. When the Group is the lessor Classification and measurement of leases Leases for which the Group is a lessor are classified as finance or operating leases. Whenever the terms of the lease transfer substantially all the risks and rewards incidental to ownership of an underlying asset to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. Amounts due from lessees under finance leases are recognized as receivables at commencement date at amounts equal to net investments in the leases, measured using the interest rate implicit in the respective leases. Initial direct costs are included in the initial measurement of the net investments in the leases. Interest income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Group’s net investment outstanding in respect of the leases. Rental income from operating leases is recognized in profit or loss on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset, and such costs are recognized as an expense on a straight-line basis over the lease term except for	2.1 Basis of preparation The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IASB”). These financial statements have been prepared on a historical cost convention, except for Prepaid forward purchase agreement and leasehold land and buildings which are measured at fair value. The preparation of financial statements in conformity with IFRS requires management to exercise its judgement in the process of applying the Group’s accounting policies. It also requires the use of certain critical accounting estimates and assumptions. The financial statements of the Group have been prepared on a going concern basis notwithstanding that the net current liabilities as of December 31, 2023 amounted to approximately US$ 13.8 8.6 1.5 15.2 5.7 The Group’s ability to continue as a going concern is largely dependent on its ability to continue growing its revenue to fully utilize its production capacity as well as raising funds from the capital market. The Group successfully raised US$ 2.5 ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued) 2.1 Basis of preparation (continued) The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3. 2.2 Basis of Consolidation The financial statements are presented in United States Dollars (“US$”), which is the Group’s functional currency. All financial information presented in United States Dollars has been rounded to the nearest dollar, unless otherwise indicated. The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at December 31, 2023 and 2022. A subsidiary is an entity (including a structured entity), directly or indirectly, controlled by the Company. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee (i.e., existing rights that give the Company the current ability to direct the relevant activities of the investee). When the Company has, directly or indirectly, less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including:- ● Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee); ● Exposure, or rights, to variable returns from its involvement with the investee; and ● The ability to use its power over the investee to affect its returns. The financial statements of 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 Company obtains control, and continue to be consolidated until the date that such control ceases. Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Company has less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including: ● The contractual arrangement(s) with the other vote holders of the investee; ● Rights arising from other contractual arrangements; ● The Company’s voting rights and potential voting rights. The Company assesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Assets, liabilities, income, and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Company gains control until the date the Company ceases to control the subsidiary. Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the parent of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Company loses control over a subsidiary, it derecognizes the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognized in profit or loss. Any investment retained is recognized at fair value. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued) 2.3 Revenue recognition Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. Revenue is recognized when the Group satisfies a performance obligation by transferring a promised good or service to the customer, which is when the customer obtains control of the goods or services. A performance obligation may be satisfied at a point in time or over time. The amount of revenue recognized is the amount allocated to the satisfied performance obligation. Revenue from contracts with customers (a) Rendering of services Revenue from rendering of services is recognized when the entity satisfies the performance obligation at a point in time, generally when the significant acts have been completed and when transfer of control occurs, or for services that are not significant, transactions revenue is recognized as the services are provided. The Group’s primary service consists of collecting and disposing of industrial wastes for its customers. (b) Sale of goods Revenue from sale of goods is recognized at a point in time when the performance obligation is satisfied by transferring a promised good to the customer. Control of the goods is transferred to the customer, generally on delivery of the goods (in this respect, incoterms are considered). Other revenue Interest income Interest income is recognized using the effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or where appropriate, a shorter period. Contract assets The contract assets are for the Group’s rights to consideration for work completed but not billed at the reporting date on its contracts; costs incurred to obtain or fulfil a contract with a customer; and any impairment losses recognized in the reporting year. The contract assets are transferred to receivables when the right to payment becomes unconditional. 2.4 Government grants Grants from the government are recognized as a receivable at their fair value when there is reasonable assurance that the grant will be received and the Group will comply with all the attached conditions. Government grants receivable are recognized as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis. Government grants relating to expenses are shown separately as other income. Government grants relating to non-monetary assets are deducted against the carrying amount of the non-monetary assets. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued) 2.5 Property, plant and equipment (a) Measurement (i) Property, plant and equipment Property, plant and equipment other than leasehold land and buildings are initially recognized at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses. Leasehold land and buildings are measured at fair value less accumulated depreciation and impairment losses recognized after the date of the revaluation. Valuations are performed frequently to ensure that the fair value of a revalued asset does not differ materially from its carrying amount. Any revaluation surplus is credited to the property revaluation reserve in equity, except to the extent that it reverses a revaluation decrease of the same asset previously recognized in the Statement of Profit or Loss and Other Comprehensive Income, in which case the increase is recognized in the statement of profit or loss. A revaluation deficit is recognized in the statement of profit or loss, except to the extent that it offsets an existing surplus on the same asset recognized in the asset revaluation reserve. An annual transfer from the property revaluation reserve to accumulated losses is made for the difference between depreciation based on the revalued carrying amount of the assets and depreciation based on the assets original cost. Upon disposal, any revaluation reserve relating to that particular asset being sold is transferred to retained profits. (ii) Components of costs The cost of an item of property, plant and equipment initially recognized includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. (b) Depreciation Depreciation is calculated using the straight-line method to allocate depreciable amounts over the estimated useful lives as follows: Schedule of property, plant and equipment depreciation, estimated useful lives Useful lives Leasehold land and buildings Over the lease term period ranging from 2 to 30 years Plant and equipment 3 5 Machineries 2 10 Renovation 5 Motor vehicles 10 Furniture and fittings 5 The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each reporting date. The effects of any revision are recognized in profit or loss when the changes arise. Fully depreciated property, plant and equipment are retained in the financial statements until they are no longer in use. (c) Subsequent expenditure Subsequent expenditure relating to property, plant and equipment that has already been recognized is added to the carrying amount of the asset only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repair and maintenance expenses are recognized in profit or loss when incurred. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued) 2.5 Property, plant and equipment (continued) (d) Disposal On disposal of an item of property, plant and equipment, the difference between the disposal proceeds and its carrying amount is recognized in profit or loss. 2.6 Intangible assets Intangible assets acquired separately are measured initially at cost. Following initial acquisition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in profit or loss in the year in which the expenditure is incurred. Intangible assets with finite useful lives are amortized over the estimated useful lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method are reviewed at least at each financial year-end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. Amortization is calculated using the straight-line method to allocate depreciable amounts over the estimated useful lives of the assets. The estimated useful lives are as follows: Schedule of intangible assets depreciable, estimated useful lives Useful lives Software 3 2.7 Borrowing costs Borrowing costs are recognized in profit or loss using the effective interest method. 2.8 Impairment of non-financial assets Intangible assets, property, plant and equipment and right-of-use assets are tested for impairment whenever there is any objective evidence or indication that these assets may be impaired or when annual impairment testing for an asset is required. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash inflows that are largely independent of those from other assets. If this is the case, the recoverable amount is determined for the cash-generating units (“CGU”) to which the asset belongs. If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference between the carrying amount and recoverable amount is recognized as an impairment loss in profit or loss. An impairment loss for an asset is reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. The carrying amount of this asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of accumulated depreciation) had no impairment loss been recognized for the asset in prior years. A reversal of impairment loss for an asset is credited to profit or loss in the period in which it arises. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued) 2.9 Financial assets (a) Classification and measurement The Group classifies its financial assets at amortized cost. The classification of debt instruments depends on the Group’s business model for managing the financial assets as well as the contractual terms of the cash flows of the financial assets. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. The Group reclassifies debt instruments when and only when its business model for managing those assets changes. At initial recognition At initial recognition, the Group measures a financial asset at its fair value plus, in the case of the financial assets not a fair value through profit or loss, transactions costs that are directly attributable to the acquisition of the financial asset. At subsequent measurement Debt instruments are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt instrument that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in interest income using the effective interest rate method. (b) Impairment of financial assets The Group recognizes a loss allowance for expected credit loss (“ECL”) on financial assets which are subject to impairment under IFRS 9 (including trade and other receivables). The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition. Lifetime ECL represents the ECL that will result from all possible default events over the expected life of the relevant instrument. In contrast, 12-month ECL (“12m ECL”) represents the portion of lifetime ECL that is expected to result from default events that are possible within 12 months after the reporting date. Assessments are done based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current conditions at the reporting date as well as the forecast of future conditions. The Group always recognizes lifetime ECL for trade and other receivables. The ECL on these assets are assessed individually for debtors with significant balances and/or collectively using a provision matrix with appropriate groupings. For all other instruments, the Group measures the loss allowance as equal to 12m ECL, unless there has been a significant increase in credit risk since initial recognition for which the Group recognizes lifetime ECL. The assessment of whether lifetime ECL should be recognized is based on significant increases in the likelihood or risk of a default occurring since initial recognition. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued) 2.9 Financial assets (b) Impairment of financial assets (continued) (i) Significant increase in credit risk In assessing whether the credit risk has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. In particular, the following information is taken into account when assessing whether credit risk has increased significantly: ● An actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating; ● Significant deterioration in external market indicators of credit risk, e.g. a significant increase in the credit spread, or the credit default swap prices for the debtor; ● Existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the debtor’s ability to meet its debt obligations; ● An actual or expected significant deterioration in the operating results of the debtor; ● An actual or expected significant adverse change in the regulatory, economic, or technological environment of the debtor that results in a significant decrease in the debtor’s ability to meet its debt obligations. Irrespective of the outcome of the above assessment, the Group presumes that the credit risk has increased significantly since initial recognition when contractual payments are more than 30 days past due, unless the Group has reasonable and supportable information that demonstrates otherwise. The Group regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant increase in credit risk before the amount becomes past due. (ii) Definition of default For internal credit risk management, the Group considers an event of default occurs when information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the Group, in full (without taking into account any collateral held by the Group). Irrespective of the above, the Group considers that default has occurred when a financial asset is more than 90 days past due unless the Group has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate. (iii) Credit-impaired financial assets A financial asset is credit-impaired when one or more events of default that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following events: (a) Significant financial difficulty of the issuer or the borrower; (b) A breach of contract, such as a default or past due event; (c) The lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession that the lender(s) would not otherwise consider. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued) 2.9 Financial assets (b) Impairment of financial assets (continued) (iii) Credit-impaired financial assets (continued) (d) It is becoming probable that the borrower will enter bankruptcy or other financial reorganization; or (e) The disappearance of an active market for that financial asset because of financial difficulties. (iv) Write-off policy The Group writes off a financial asset when there is information indicating that the counterparty is in severe financial difficulty and there is no realistic prospect of recovery, for example, when the counterparty has been placed under liquidation or has entered into bankruptcy proceedings, or in the case of trade receivables, when the amounts are over one year past due, whichever occurs sooner. Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account legal advice where appropriate. A write-off constitutes a derecognition event. Any subsequent recoveries are recognized in profit or loss. (v) Measurement and recognition of ECL The measurement of ECL is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default) and the exposure to default. The assessment of the probability of default and loss given default is based on historical data adjusted by forward-looking information. Estimation of ECL reflects an unbiased and probability-weighted amount that is determined with the respective risks of default representing the weights. Generally, the ECL is the difference between all contractual cash flows that are due to the Group in accordance with the contract and the cash flows that the Group expects to receive, discounted at the effective interest rate determined at initial recognition. Where ECL is measured on a collective basis or for cases where evidence at the individual instrument level may not yet be available, the financial instruments are grouped on the following basis: ● Nature of financial instruments; ● Past-due status; ● Nature, size and industry of debtors; and ● External credit ratings where available. The groups are regularly reviewed by management to ensure the constituents of each group continue to share similar credit risk characteristics. Interest income is calculated based on the gross carrying amount of the financial asset unless the financial asset is credit impaired, in which case interest income is calculated based on amortized cost of the financial asset. (c) Recognition and derecognition Regular way purchases and sales of financial assets are recognized on the trade date – the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. On disposal of a debt instrument, the difference between the carrying amount and the sale proceeds is recognized in profit or loss. Any amount previously recognized in other comprehensive income relating to that asset is reclassified to profit or loss. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued) 2.10 Financial Liabilities Borrowings are presented as current liabilities unless the Group has an unconditional right to defer settlement for at least 12 months after the reporting date, in which case they are presented as non-current liabilities. Borrowings are initially recognized at fair values (net of transaction costs) and subsequently carried at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method. Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid. They are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). Otherwise, they are presented as non-current liabilities. Trade and other payables are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest method. (a) Derecognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss. (b) Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously. 2.11 Leases When the Group is the lessee At the inception of the contract, the Group assesses if the contract contains a lease. A contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Reassessment is only required when the terms and conditions of the contract are changed. Right-of-use assets The Group recognizes a right-of-use asset and lease liability at the date at which the underlying asset is available for use. Right-of-use assets are measured at cost which comprises the initial measurement of lease liabilities adjusted for any lease payments made at or before the commencement date and lease incentive received. Any initial direct costs that would not have been incurred if the lease had not been obtained are added to the carrying amount of the right-of-use assets. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. Right-of-use assets are presented within “Property, plant and equipment”. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued) 2.11 Leases (continued) Lease liabilities The initial measurement of a lease liability is measured at the present value of the lease payments discounted using the implicit rate in the lease, if the rate can be readily determined. If that rate cannot be readily determined, the Group shall use its incremental borrowing rate. Lease payments include the following: ● Fixed payments (including in-substance fixed payments), less any lease incentives receivable; ● Variable lease payment that is based on an index or rate, initially measured using the index or rate as at the commencement date; ● Amount expected to be payable under residual value guarantees; ● The exercise price of a purchase option if it is reasonably certain the option will be exercised; and ● Payment of penalties for terminating the lease, if the lease term reflects the Group exercising that option. For a contract that contains both lease and non-lease components, the Group allocates the consideration to each lease component on the basis of the relative stand-alone price of the lease and non-lease components. The Group has elected to not separate lease and non-lease components for property leases and accounts for these as one single lease component. Lease liability is measured at amortized cost using the effective interest method. Lease liability shall be remeasured when: ● There is a change in future lease payments arising from changes in an index or rate; ● There is a change in the Group’s assessment of whether it will exercise an extension option; or ● There is modification in the scope or the consideration of the lease that was not part of the original term. Lease liability is remeasured with a corresponding adjustment to the right-of-use assets, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Group presents lease liabilities as a separate line item on the statement of financial position. Short-term and low-value leases The Group has elected to not recognize right-of-use assets and lease liabilities for short-term leases that have lease terms of 12 months or less and leases of low value. Payments relating to these leases are expensed to profit or loss on a straight-line basis over the lease term. Variable lease payments Variable lease payments that are not based on an index or a rate are not included as part of the measurement and initial recognition of the lease liability. The Group shall recognize those lease payments in profit or loss in the periods that triggered those lease payments. Lease modifications The Group accounts for a lease modification as a separate lease if: ● The modification increases the scope of the lease by adding the right to use one or more underlying assets; and ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued) 2.11 Leases (continued) ● The consideration for the leases increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract. For a lease modification that is not accounted for as a separate lease, the Group remeasures the lease liability based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification. The Group accounts for the remeasurement of lease liabilities by making corresponding adjustments to the relevant right-of-use asset. When the modified contract contains a lease component and one or more additional lease or non-lease components, the Group allocates the consideration in the modified contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components. When the Group is the lessor Classification and measurement of leases Leases for which the Group is a lessor are classified as finance or operating leases. Whenever the terms of the lease transfer substantially all the risks and rewards incidental to ownership of an underlying asset to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. Amounts due from lessees under finance leases are recognized as receivables at commencement date at amounts equal to net investments in the leases, measured using the interest rate implicit in the respective leases. Initial direct costs are included in the initial measurement of the net investments in the leases. Interest income is allocated to accounting periods so as t

Critical accounting estimates,

Critical accounting estimates, assumptions and judgements	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Critical Accounting Estimates Assumptions And Judgements
Critical accounting estimates, assumptions and judgements	3. Critical accounting estimates, assumptions and judgements Estimates, assumptions and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical judgements in applying the entity’s accounting policies (a) Determination of functional currency In determining the functional currency of the Group, judgment is used by the management to determine the currency of the primary economic environment in which the Group operates. Consideration factors include the currency that mainly influences sales prices of goods and services and the currency of the country whose competitive forces and regulations mainly determines the sales prices of its goods and services. (b) Determination of lease term of contracts with extension options The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Group has several lease contracts that include extension options. The Group applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to extend the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise the extension. After the commencement date, the Group reassesses the lease term to consider whether there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to extend (e.g. construction of significant leasehold improvements or significant customization to the leased asset). The Group includes the extension option in the lease term for leases of leasehold buildings because of the leasehold improvements made and the significant costs that would arise to replace the assets. The extension options for leases of motor vehicles are not included as part of the lease term because the Group typically leases motor vehicles for not more than five years and, hence, will not exercise the extension options. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 3. Critical accounting estimates, assumptions and judgements (continued) Critical accounting estimates and assumptions (a) Useful lives of plant and equipment The useful life of an item of property, plant and equipment is estimated at the time the asset is acquired and is based on historical experience with similar assets and takes into account anticipated technological or other changes. If changes occur more rapidly than anticipated or the asset experiences an unexpected level of wear and tear, the useful life will be adjusted accordingly. The carrying amount of the Group’s plant and equipment as at June 30, 2024 was US$ 21,043,668 21,786,365 (b) Inventory valuation method Inventory write-down is made based on the current market conditions, historical experience and selling goods of a similar nature. It could change significantly as a result of changes in market conditions. A review is made periodically for excess inventories, obsolescence and declines in net realizable value and an allowance is recorded against the inventory balances for any such declines. The realizable value represents the best estimate of the recoverable amount and is based on the most reliable evidence available and inherently involves estimates regarding the future expected realizable value. The carrying amount of the Group’s inventories as at June 30, 2024 was US$ 78,682 64,184 (c) Provision for expected credit losses of trade receivables The Group uses a provision matrix to calculate ECLs for trade receivables. The provision rates are based on days past due for groupings of various customer segments that have similar loss patterns. The provision matrix is initially based on the Group’s historical observed default rates. The Group will calibrate the matrix to adjust historical credit loss experience with forward-looking information. At every reporting date, historical default rates are updated and changes in the forward-looking estimates are analysed. The assessment of the correlation between historical observed default rates, forecasted economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecasted economic conditions. The Group’s historical credit loss experience and forecast of economic conditions may also not be representative of customers’ actual default in the future. The carrying amount of the Group’s trade receivables as at June 30, 2024 was US$ 454,398 461,497 (d) Impairment of non-financial assets The impairment testing of non-financial assets requires assumptions about the future cash flows projections as well as about the discount rate to be applied. The assumptions used to arrive at the cash flow projections are dependent on the future market shares, the market trend and the profitability of the Group’s products. Impairment testing of non-financial assets requires estimates about the extent and probability of the occurrence of future events. As far as possible, estimates are derived from past experience taking into account current market conditions and the stage of technological advancement. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 3. Critical accounting estimates, assumptions and judgements (continued) Critical accounting estimates and assumptions (continued) (e) Capitalization of intangible assets The costs of internally generated intangible assets are capitalized in accordance with the accounting policy in Note 2.6 to the financial statements. Initial capitalization of costs is based on management’s judgement that technological and economic feasibility is confirmed, usually when a development project has reached a defined milestone according to an established project management model. In determining the amounts to be capitalized, management makes assumptions regarding the expected future cash generation of the project, discount rates to be applied and the expected period of benefits. The carrying amount of the intangible assets at the reporting date is US$ 2,475,974 2,381,465 (f) Forward Purchase Agreement On July 27, 2023, the Company, ESGL entered into an agreement (“Forward Purchase Agreement”) with Vellar Opportunities Fund Master, Ltd. (“Vellar”) for an OTC Equity Prepaid Forward Transaction. On the same date as the execution of the Forward Purchase Agreement, Vellar assigned and novated 50 In aggregate, Vellar purchased 931,915 500,000 969 Termination of Forward Purchase Agreement On or about December 4, 2023, the Company and ARRT mutually agreed to terminate the Forward Purchase Agreement. Subsequently, the Company received a termination notice from Vellar dated March 14, 2024, notifying the Company that the Valuation Date with Vellar shall be deemed to be March 15, 2024. Upon the Valuation Date, the obligations of Vellar and the Company under the Forward Purchase Agreement shall terminate. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023	3. Critical accounting estimates, assumptions and judgements Estimates, assumptions and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical judgements in applying the entity’s accounting policies (a) Determination of functional currency In determining the functional currency of the Group, judgment is used by the management to determine the currency of the primary economic environment in which the Group operates. Consideration factors include the currency that mainly influences sales prices of goods and services and the currency of the country whose competitive forces and regulations mainly determines the sales prices of its goods and services. (b) Determination of lease term of contracts with extension options The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Group has several lease contracts that include extension options. The Group applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to extend the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise the extension. After the commencement date, the Group reassesses the lease term to consider whether there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to extend (e.g. construction of significant leasehold improvements or significant customization to the leased asset). The Group includes the extension option in the lease term for leases of leasehold buildings because of the leasehold improvements made and the significant costs that would arise to replace the assets. The extension options for leases of motor vehicles are not included as part of the lease term because the Group typically leases motor vehicles for not more than five years and, hence, will not exercise the extension options. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 3. Critical accounting estimates, assumptions and judgements (continued) Critical accounting estimates and assumptions (a) Useful lives of plant and equipment The useful life of an item of property, plant and equipment is estimated at the time the asset is acquired and is based on historical experience with similar assets and takes into account anticipated technological or other changes. If changes occur more rapidly than anticipated or the asset experiences an unexpected level of wear and tear, the useful life will be adjusted accordingly. The carrying amount of the Group’s plant and equipment as at December 31, 2023 was US$ 21,786,365 22,493,283 (b) Inventory valuation method Inventory write-down is made based on the current market conditions, historical experience and selling goods of a similar nature. It could change significantly as a result of changes in market conditions. A review is made periodically for excess inventories, obsolescence and declines in net realizable value and an allowance is recorded against the inventory balances for any such declines. The realizable value represents the best estimate of the recoverable amount and is based on the most reliable evidence available and inherently involves estimates regarding the future expected realizable value. The carrying amount of the Group’s inventories as at December 31, 2023 was US$ 64,184 221,151 (c) Provision for expected credit losses of trade receivables The Group uses a provision matrix to calculate ECLs for trade receivables. The provision rates are based on days past due for groupings of various customer segments that have similar loss patterns. The provision matrix is initially based on the Group’s historical observed default rates. The Group will calibrate the matrix to adjust historical credit loss experience with forward-looking information. At every reporting date, historical default rates are updated and changes in the forward-looking estimates are analysed. The assessment of the correlation between historical observed default rates, forecasted economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecasted economic conditions. The Group’s historical credit loss experience and forecast of economic conditions may also not be representative of customers’ actual default in the future. The carrying amount of the Group’s trade receivables as at December 31, 2023 was US$ 461,497 389,648 (d) Impairment of non-financial assets The impairment testing of non-financial assets requires assumptions about the future cash flows projections as well as about the discount rate to be applied. The assumptions used to arrive at the cash flow projections are dependent on the future market shares, the market trend and the profitability of the Group’s products. Impairment testing of non-financial assets requires estimates about the extent and probability of the occurrence of future events. As far as possible, estimates are derived from past experience taking into account current market conditions and the stage of technological advancement. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 3. Critical accounting estimates, assumptions and judgements (continued) Critical accounting estimates and assumptions (continued) (e) Capitalization of intangible assets The costs of internally generated intangible assets are capitalized in accordance with the accounting policy in Note 2.6 to the financial statements. Initial capitalization of costs is based on management’s judgement that technological and economic feasibility is confirmed, usually when a development project has reached a defined milestone according to an established project management model. In determining the amounts to be capitalized, management makes assumptions regarding the expected future cash generation of the project, discount rates to be applied and the expected period of benefits. The carrying amount of the intangible assets at the reporting date is US$ 2,381,465 1,845,912 (f) Forward Purchase Agreement On July 27, 2023, the Company, ESGL entered into an agreement (“Forward Purchase Agreement”) with Vellar Opportunities Fund Master, Ltd. (“Vellar”) for an OTC Equity Prepaid Forward Transaction. On the same date as the execution of the Forward Purchase Agreement, Vellar assigned and novated 50 In aggregate, Vellar purchased 931,915 500,000 969 ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022

Revenue

Revenue	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Disclosure Of Revenue Abstract
Revenue	4. Revenue Revenue classified by type of good or service is as follows : Schedule of revenue classified by type of good or service 2024 2023 Unaudited For the Period Ended June 30, 2024 2023 US$ US$ Revenue from: - Sales of circular products 800,129 1,313,953 - Waste disposal services 2,687,750 2,080,360 Revenue 3,487,879 3,394,313 The revenue from sales of goods and other service income is recognized based on a point in time.	4. Revenue Revenue classified by type of good or service is as follows : Schedule of revenue classified by type of good or service 2023 2022 US$ US$ Revenue from: - Sales of circular products 2,305,646 2,746,097 - Waste disposal services 3,858,527 2,245,937 Revenue 6,164,173 4,992,034 The revenue from sales of goods and other service income is recognized based on a point in time.

Other income

Other income	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Other Income
Other income	5. Other income Schedule of other income 2024 2023 Unaudited For the Periods Ended June 30, 2024 2023 US$ US$ Foreign exchange gain 264,158 65,015 Interest income 3 12,002 Gain from disposal of motor vehicle - 2,130 Government grants 18,052 33,511 Grant from AEPW 1 - 40,320 Warehousing and logistic services - 36,357 Other Other income 282,213 189,335 1 The Alliance to End Plastic Waste (“AEPW”) is an industry-founded and funded non-governmental and non-profit organization based in Singapore. Founding members include BASF, Chevron Phillips Chemical, ExxonMobil, Dow Chemical, Mitsubishi Chemical Holdings, Proctor & Gamble and Shell	5. Other income Schedule of other income 2023 2022 US$ US$ Interest income 18,308 4 Gain from disposal of motor vehicle - 26,586 Government grants 42,819 76,588 Grant from AEPW 1 72,000 116,000 Warehousing and logistic services 36,357 175,650 Others 335 1,545 Other income 169,819 396,373 1 The Alliance to End Plastic Waste (“AEPW”) is an industry-founded and funded non-governmental and non-profit organization based in Singapore. Founding members include BASF, Chevron Phillips Chemical, ExxonMobil, Dow Chemical, Mitsubishi Chemical Holdings, Proctor & Gamble and Shell

Other operating expenses

Other operating expenses	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Other Operating Expenses
Other operating expenses	6. Other operating expenses Schedule of other operating expenses Unaudited For the Periods Ended June 30, 2024 2023 US$ US$ Foreign exchange loss Foreign worker levy 82,944 78,335 Impairment loss on receivables Insurance 189,192 38,647 Professional fees 285,343 291,303 Property tax 54,293 54,630 Rental and storage 211,561 214,175 Utilities 36,889 92,045 Upkeep, repair and maintenance 58,165 53,392 Chemical and incineration fees 189,545 70,378 Bank service charges 3,528 45,878 Listing fees and expenses 75,641 - Others 25,172 52,743 Other operating expenses 1,212,273 991,526 ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023	6. Other operating expenses Schedule of other operating expenses 2023 2022 US$ US$ Foreign exchange loss 189,426 22,287 Foreign worker levy 168,137 97,703 Impairment loss on receivables - 44,271 Insurance 55,694 43,589 Professional fees 109,703 93,978 Property tax 108,412 105,771 Rental and storage 594,748 290,481 Utilities 189,982 157,974 Upkeep, repair and maintenance 230,037 317,267 Chemical and incineration fees 396,428 229,204 Bank service charges 50,427 8,203 Others 9,398 117,099 Other operating expenses 2,102,392 1,527,827 ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022

Employee benefits expense

Employee benefits expense	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Employee Benefits Expense
Employee benefits expense	7. Employee benefits expense Schedule of employee benefits expense 2024 2023 Unaudited For the Periods Ended June 30, 2024 2023 US$ US$ Salaries, wages and bonuses 524,521 472,611 Directors’ remuneration 373,093 110,651 Directors’ fees 64,002 - Employer’s contribution to defined contribution plans including Central Provident Fund 60,679 53,577 Other short term benefit 27,602 2,221 Employee benefits expense, gross - - Less: Amount capitalized as internal development of intangible assets - - Employee benefits expense 1,049,897 639,060	7. Employee benefits expense Schedule of employee benefits expense 2023 2022 US$ US$ Salaries, wages and bonuses 2,258,195 1,571,124 Directors’ remuneration 272,659 211,853 Directors’ fees 52,252 - Employer’s contribution to defined contribution plans including Central Provident Fund 142,749 107,263 Other short term benefit 26,943 54,077 Employee benefits expense, gross 2,752,798 1,944,317 Less: Amount capitalized as internal development of intangible assets (1,388,584 ) (1,011,193 ) Employee benefits expense 1,364,214 933,124

Finance expense

Finance expense	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Finance Expense
Finance expense	8. Finance expense Schedule of finance expense Unaudited For the Periods Ended June 30 2024 2023 US$ US$ Interest expenses: - Lease liabilities 26,129 28,492 - Borrowings 120,999 130,420 Interest expenses 147,128 158,912	8. Finance expense Schedule of finance expense 2023 2022 US$ US$ Interest expenses: - Lease liabilities 55,934 28,559 - Borrowings 284,112 217,800 - Loans from Directors 48,671 - Interest expenses 388,717 246,359

Income tax expense

Income tax expense	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Income Tax Expense
Income tax expense	9. Income tax expense Schedule of tax expense attributable to loss Unaudited For the Periods Ended June 30 2024 2023 US$ US$ Tax expense attributable to loss is made up of: - Current income tax 146,480 - - Movements in deferred tax liabilities 2,000 39,000 Tax expense attributable to loss 148,480 39,000 The tax on profit or loss before income tax differs from the theoretical amount that would arise using the Singapore standard rate of income tax expense as follows : Schedule of income tax rates to profit or loss before income tax expense Unaudited For the Periods Ended June 30, 2024 2023 US$ US$ Loss before income tax (322,944 ) (590,254 ) Tax calculated at tax rate of 17 17 (54,900 ) (100,343 ) Effects of: - Expenses not deductible for tax purposes 178,809 5,331 - Income not subject to tax (43,011 ) (21,754 ) - Listing expenses - - - Utilization of tax losses - - - Temporary difference 67,582 155,766 Income tax expense 148,480 39,000 ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023	9. Income tax expense Schedule of tax expense attributable to loss 2023 2022 US$ US$ Tax expense attributable to loss is made up of: - Movements in deferred tax liabilities 133,000 8000 Tax expense attributable to loss 133,000 8,000 The tax on profit or loss before income tax differs from the theoretical amount that would arise using the Singapore standard rate of income tax expense as follows : Schedule of income tax rates to profit or loss before income tax expense 2023 2022 US$ US$ Loss before income tax (94,846,338 ) (2,383,812 ) Tax calculated at tax rate of 17 17 (16,123,877 ) (405,248 ) Tax calculated at tax rate (16,123,877 ) (405,248 ) Effects of: - Listing expenses 15,821,445 - - Expenses not deductible for tax purposes 467,334 172,993 - Income not subject to tax (3,112 ) (310 ) - Utilization of tax losses - (11,000 ) - Temporary difference (28,790 ) 251,565 Income tax expense 133,000 8,000 ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022

Property, plant and equipment

Property, plant and equipment	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Disclosure of detailed information about property, plant and equipment [abstract]
Property, plant and equipment	10. Property, plant and equipment Schedule of property, plant and equipment Leasehold land and buildings Plant and equipment Machineries Renovation Motor vehicles Furniture and fittings Total Unaudited Leasehold land and buildings Plant and equipment Machineries Renovation Motor vehicles Furniture and fittings Total US$ US$ US$ US$ US$ US$ US$ 2024 Beginning of financial period Cost - 4,960,307 1,213,687 490,239 694,591 131,973 7,490,797 Valuation 19,264,346 - - - - - 19,264,346 Beginning of financial period 19,264,346 4,960,307 1,213,687 490,239 694,591 131,973 26,755,143 Additions - 38,570 - - - 127 38,697 End of financial period 19,264,346 4,998,877 1,213,687 490,239 694,591 132,100 26,793,840 Accumulated depreciation Beginning of financial year 732,355 2,103,927 974,802 487,530 543,149 127,015 4,968,778 Depreciation charge 459,252 249,964 48,935 301 22,187 755 781,394 End of financial period 1,191,607 2,353,891 1,023,737 487,831 565,336 127,770 5,750,172 Net book value End of financial period 18,072,739 2,644,986 189,950 2,408 129,255 4,330 21,043,668 ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 10. Property, plant and equipment (continued) Leasehold land and buildings Plant and equipment Machineries Renovation Motor vehicles Furniture and fittings Total US$ US$ US$ US$ US$ US$ US$ 2023 Beginning of financial year Cost - 4,385,903 1,213,687 487,229 692,142 127,487 6,906,448 Valuation 19,828,888 19,828,888 Beginning of financial year 19,828,888 4,385,903 1,213,687 487,229 692,142 127,487 26,735,336 Beginning balance 19,828,888 4,385,903 1,213,687 487,229 692,142 127,487 26,735,336 Additions - 580,125 - 3,010 63,423 4,486 651,044 Disposal - (5,721 ) - - (60,974 ) - (66,695 ) Lease modifications 8,230 - - - - - 8,230 Revaluation (910,055 ) - - - - - (910,055 ) Exchange difference 337,283 - - - - - 337,283 End of financial year 19,264,346 4,960,307 1,213,687 490,239 694,591 131,973 26,755,143 Ending balance 19,264,346 4,960,307 1,213,687 490,239 694,591 131,973 26,755,143 Accumulated depreciation Beginning of financial year 523,495 1,689,985 874,266 486,040 545,593 122,674 4,242,053 Beginning balance 523,495 1,689,985 874,266 486,040 545,593 122,674 4,242,053 Depreciation charge 932,231 416,516 100,536 1,490 46,695 4,341 1,501,809 Disposal - (2,574 ) - - (49,139 ) - (51,713 ) Revaluation (723,371 ) - - - - - (723,371 ) End of financial year 732,355 2,103,927 974,802 487,530 543,149 127,015 4,968,778 Ending balance 732,355 2,103,927 974,802 487,530 543,149 127,015 4,968,778 Net book value End of financial year 18,531,991 2,856,380 238,885 2,709 151,442 4,958 21,786,365 Ending balance 18,531,991 2,856,380 238,885 2,709 151,442 4,958 21,786,365 ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023	10. Property, plant and equipment Schedule of property, plant and equipment Leasehold Plant and Machineries Renovation Motor Furniture Total US$ US$ US$ US$ US$ US$ US$ 2023 Cost Beginning of financial year 19,828,888 4,385,903 1,213,687 487,229 692,142 127,487 26,735,336 Additions - 580,125 - 3,010 63,423 4,486 651,044 Depreciation charge - Disposal - (5,721 ) - - (60,974 ) - (66,695 ) Lease modifications 8,230 - - - - - 8,230 Revaluation (910,055 ) - - - - - (910,055 ) Exchange difference 337,283 - - - - - 337,283 End of financial year 19,264,346 4,960,307 1,213,687 490,239 694,591 131,973 26,755,143 Accumulated depreciation Beginning of financial year 523,495 1,689,985 874,266 486,040 545,593 122,674 4,242,053 Depreciation charge 932,231 416,516 100,536 1,490 46,695 4,341 1,501,809 Disposal - (2,574 ) - - (49,139 ) - (51,713 ) Revaluation (723,371 ) - - - - - (723,371 ) End of financial year 732,355 2,103,927 974,802 487,530 543,149 127,015 4,968,778 Net book value End of financial year 18,531,991 2,856,380 238,885 2,709 151,442 4,958 21,786,365 ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 10. Property, plant and equipment, net (continued) Leasehold Plant and Machineries Renovation Motor Furniture Total US$ US$ US$ US$ US$ US$ US$ 2022 Cost Beginning of financial year 11,414,034 3,898,326 1,213,687 487,229 684,093 127,487 17,824,856 Additions - 487,577 - - 15,100 - 502,677 Disposal (7,051 ) (7,051 ) Lease modifications 1,296,818 - - - - 1,296,818 Revaluation 7,065,299 - 7,065,299 Exchange difference 52,737 - - - - - 52,737 End of financial year 19,828,888 4,385,903 1,213,687 487,229 692,142 127,487 26,735,336 Accumulated depreciation Beginning of financial year 348,207 1,315,480 772,407 478,565 506,219 115,387 3,536,265 Beginning Balance 348,207 1,315,480 772,407 478,565 506,219 115,387 3,536,265 Depreciation charge 1,126,858 374,505 101,859 7,475 43,419 7,287 1,661,403 Disposal - - - - (4,045 ) - (4,045 ) Revaluation (951,570 ) - - - - - (951,570 ) End of financial year 523,495 1,689,985 874,266 486,040 545,593 122,674 4,242,053 Ending Balance 523,495 1,689,985 874,266 486,040 545,593 122,674 4,242,053 Net book value End of financial year 19,305,393 2,695,918 339,421 1,189 146,549 4,813 22,493,283 Ending Balance 19,305,393 2,695,918 339,421 1,189 146,549 4,813 22,493,283 Right-of-use assets acquired under leasing arrangements are presented together with the owned assets of the same class. Details of such leased assets are disclosed in Note 15. During the financial year, leasehold land and buildings with carrying amount of approximately US$ 16,532,686 17,105,459 ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 10. Property, plant and equipment, net (continued) Fair value hierarchy Independent valuations were performed by the valuers, CKS Property Consultants Pte Ltd and GB Global Pte Ltd to determine the fair value of leasehold land and buildings as at December 31, 2023 and 2022, respectively. The revaluation surplus net of applicable deferred income taxes was credited to revaluation reserve. The following table presents the fair value measurement hierarchy of the Group’s leasehold land and buildings carried at fair value:- Schedule of fair value measurement hierarchy of leasehold land and buildings December 31, 2023 (Level 1) (Level 2) (Level 3) Fair value measurements as at December 31, 2023 categorized into Quoted prices in Significant Significant active markets for other observable unobservable Fair value at identical assets inputs inputs December 31, 2023 (Level 1) (Level 2) (Level 3) US$ US$ US$ US$ Recurring fair value measurement Leasehold land and buildings: - Industrial – Singapore 16,532,686 - - 16,532,686 December 31, 2022 (Level 1) (Level 2) (Level 3) Fair value measurements as at December 31, 2022 categorized into Quoted prices in active markets for Significant Significant Fair value at identical assets observable inputs unobservable December 31, 2022 (Level 1) (Level 2) (Level 3) US$ US$ US$ US$ Recurring fair value measurement Leasehold land and buildings: - Industrial - Singapore 17,105,459 - - 17,105,459 Assets, at fair value 17,105,459 - - 17,105,459 During the years ended December 31, 2023 and 2022, there were no transfers between Level 1 and Level 2, or transfers into or out of Level 3. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 10. Property, plant and equipment, net (continued) Reconciliation of fair value measurements categorized within Level 3 of the fair value hierarchy:- Schedule of reconciliation of fair value measurements Leasehold land and buildings US$ Carrying amount at December 31, 2022 17,105,459 Depreciation charge on revaluation of properties held for own use (723,371 ) Net gain from a fair value adjustment recognized in the consolidated statement of profit or loss and other comprehensive income 150,598 Net gain from a fair value adjustment recognized in the consolidated statement of profit or loss and other comprehensive income 150,598 Carrying amount at December 31, 2023 16,532,686 Valuation techniques There has been no change from the valuation techniques used in the financial years ended December 31, 2023 and 2022. For all leasehold land and buildings, the valuation was determined using a market comparison approach. The fair value of leasehold land and buildings is based on prices for recent market transactions in similar properties and adjusted to reflect the conditions and locations of the Group’s properties. The significant input into this valuation approach is price per square foot, which has been adjusted to reflect the location, size, tenure, age and condition, standard of finishes, use, facilities provided, date of transaction and the prevailing economic conditions. Below is a summary of the valuation techniques used and the key inputs to the valuation of leasehold land and buildings:- Schedule of valuation techniques used and key inputs to valuation of leasehold land and buildings Valuation techniques Significant unobservable inputs Range or weighted average 2023 2022 Leasehold land and buildings in Singapore Market comparison approach Price per square foot US$ 113 US$ 396 per square foot US$ 67 141 The fair value measurements are based on the above leasehold land and buildings’ highest and best use, which does not differ from their actual use. Had the Group’s leasehold land and buildings been carried at cost less accumulated depreciation, the carrying amount of the Group’s leasehold land and buildings as at December 31, 2023 and 2022 would have been approximately US$ 3,645,289 4,118,381 ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022

Intangible assets

Intangible assets	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Disclosure of detailed information about intangible assets [abstract]
Intangible assets	11. Intangible assets Schedule of intangible assets Unaudited June 30, 2024 December 31, 2023 US$ US$ Cost Beginning of financial year 4,349,839 2,961,256 Additions - internal development 653,849 1,388,583 End of financial period and year 5,003,688 4,349,839 Accumulated amortisation Beginning of financial year 1,968,374 1,115,344 Amortization 559,340 853,030 End of financial period and year 2,527,714 1,968,374 Net book value End of financial period and year 2,475,974 2,381,465	11. Intangible assets Schedule of intangible assets 2023 2022 US$ US$ Cost Beginning of financial year 2,961,256 1,950,063 Additions - internal development 1,388,583 1,011,193 Amortization End of financial year 4,349,839 2,961,256 Accumulated amortisation Beginning of financial year 1,115,344 476,495 Beginning Balance 1,115,344 476,495 Amortization 853,030 638,849 End of financial year 1,968,374 1,115,344 Ending Balance 1,968,374 1,115,344 Net book value End of financial year 2,381,465 1,845,912

Trade and other receivables

Trade and other receivables	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Trade And Other Receivables
Trade and other receivables	12. Trade and other receivables Schedule of trade and other receivables Unaudited June 30, 2024 December 31, 2023 US$ US$ Trade receivables - Non-related parties 454,398 461,497 Trade receivables 454,398 461,497 Non-trade receivables - Advance payment to suppliers 329,597 329,597 - Amount due from a director - - - Deposits 169,737 46,035 - Goods and services tax recoverable - 184 - Prepayments 32,219 195,209 Non-trade receivables 531,553 571,025 Trade and other receivables 985,951 1,032,522 ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 12. Trade and other receivables (continued) Receivables that are past due but not impaired The Group had trade receivables amounting to US$ 125,668 59,757 Schedule of components of trade receivables aging Unaudited June 30, 2024 December 31, 2023 US$ US$ Less than 30 days 32,438 44,543 30 to 90 days 93,230 15,214 Trade and other receivables 125,668 59,757	12. Trade and other receivables Schedule of trade and other receivables 2023 2022 US$ US$ Trade receivables - Non-related parties 461,497 389,648 Trade receivables 461,497 389,648 Non-trade receivables - Advance payment to suppliers 329,597 337,488 - Deposits 46,035 59,857 - Goods and services tax recoverable 184 2,294 - Prepayments 195,209 25,841 Non-trade receivables 571,025 425,480 Trade and other receivables 1,032,522 815,128 ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 12. Trade and other receivables (continued) Receivables that are past due but not impaired The Group had trade receivables amounting to US$ 59,757 26,485 Schedule of components of trade receivables aging 2023 2022 US$ US$ Less than 30 days 44,543 22,473 30 to 90 days 15,214 1,895 More than 90 days - 2,117 Trade and other receivables 59,757 26,485 The trade receivables and contract assets are subject to the expected credit loss model under the financial reporting standard on financial instruments. At all reporting dates the historical observed default rates are updated and changes in the forward-looking estimates are analyzed. Details of impairment of trade and other receivables are set out in Note 23(b)(ii). As of December 31, 2023, the Group has made allowance for expected credit loss amounting to US$ 47,691 46,768

Inventories

Inventories	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Notes and other explanatory information [abstract]
Inventories	13. Inventories Schedule of inventories Unaudited June 30, 2024 December 31, 2023 US$ US$ Raw materials 78,682 64,184 Finished goods - - Inventories 78,682 64,184	13. Inventories Schedule of inventories 2023 2022 US$ US$ Raw materials 64,184 116,721 Finished goods - 104,430 Inventories 64,184 221,151 The cost of inventories recognized as an expense amounted to US$ 977,619 1,093,194

Reserve

Reserve	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Reserve
Reserve	14. Reserve (a) Revaluation reserve Revaluation reserve represents increases in the fair value of leasehold land and buildings, net of tax, and decreases to the extent that such decrease relates to an increase on the same asset previously recognized in other comprehensive income. (b) Other reserve Other reserve represents member’s deemed contribution arising from reorganization. (c) Exchange reserve The exchange reserve represents the exchange differences relating to the translation of the Group’s leasehold land and building from the revaluation. The exchange differences are recognized directly in other comprehensive income and accumulated in the exchange reserve. Such exchange differences accumulated in the exchange reserve are reclassified to the consolidated income statement on the disposal of the leasehold land and building. (d) Share premium reserve The share premium reserve represents the excess amounts paid by shareholders above the par value of the shares issued. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023	14. Reserve (a) Revaluation surplus Revaluation surplus represents increases in the fair value of leasehold land and buildings, net of tax, and decreases to the extent that such decrease relates to an increase on the same asset previously recognized in other comprehensive income. (b) Other reserve Other reserve represents member’s deemed contribution arising from reorganization. (c) Exchange reserve The exchange reserve represents the exchange differences relating to the translation of the Group’s leasehold land and building from the revaluation. The exchange differences are recognized directly in other comprehensive income and accumulated in the exchange reserve. Such exchange differences accumulated in the exchange reserve are reclassified to the consolidated income statement on the disposal of the leasehold land and building. (d) Share premium reserve The share premium reserve represents the excess amounts paid by shareholders above the par value of the shares issued. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022

Leases _ The Group as a lessee

Leases – The Group as a lessee	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Notes and other explanatory information [abstract]
Leases – The Group as a lessee	15. Leases – The Group as a lessee Nature of the Group’s leasing activities The Group has lease contracts for land, buildings, machineries and equipment. The Group’s obligations under these leases are secured by the lessor’s title to the leased assets. The Group is restricted from assigning and subleasing the leased assets. The Group regularly enters into short-term leases of 12 months or less The Group applies the ‘short-term lease’ recognition exemptions for these leases. (a) Carrying amounts ROU assets classified within property, plant and equipment Schedule of ROU assets classified within property, plant and equipment Unaudited June 30, 2024 December 31, 2023 US$ US$ Carrying amounts Leasehold land and buildings 1,894,746 1,999,304 Plant and equipment - 270 Motor vehicles 110,162 130,642 Carrying amounts ROU assets 2,004,908 2,130,216 (b) Depreciation charge during the financial year Schedule of depreciation charge Unaudited Periods ended June 30, 2024 2023 US$ US$ Leasehold land and buildings 104,559 104,302 Plant and equipment 270 3,941 Motor vehicles 20,479 20,001 Depreciation charge 125,308 128,244 Interest expense Schedule of interest expense Unaudited Periods ended June 30 2024 2023 US$ US$ Interest expense on lease liabilities 26,129 28,492 ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023	15. Leases – The Group as a lessee Nature of the Group’s leasing activities The Group has lease contracts for land, buildings, machineries and equipment. The Group’s obligations under these leases are secured by the lessor’s title to the leased assets. The Group is restricted from assigning and subleasing the leased assets. The Group regularly enters into short-term leases of 12 months or less for certain plant and equipment and machineries. The Group applies the ‘short-term lease’ recognition exemptions for these leases. (a) Carrying amounts ROU assets classified within property, plant and equipment Schedule of ROU assets classified within property, plant and equipment 2023 2022 US$ US$ Carrying amounts Leasehold land and buildings 1,999,304 2,199,934 Plant and equipment 270 8,151 Motor vehicles 130,642 113,707 Carrying amounts ROU assets 2,130,216 2,321,792 (b) Depreciation charge during the financial year Schedule of depreciation charge 2023 2022 US$ US$ Leasehold land and buildings 208,860 175,287 Plant and equipment 7,882 7,882 Motor vehicles 40,480 35,217 Depreciation charge 257,222 218,386 Interest expense Schedule of interest expense 2023 2022 US$ US$ Interest expense on lease liabilities 55,934 28,559 (c) Short-term leases Schedule of short-term leases 2023 2022 US$ US$ Expense relating to short-term leases 372,721 157,687 Total cash outflow for leases 614,191 372,642 Note: Amount includes payments of principal and interest portion of lease liabilities and short-term leases. For both years, the Group leases various offices and machineries for its operations. Lease contracts are entered into for fixed term of 1 month to 30 years. ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022 15. Leases – The Group as a lessee (continued) The Group regularly enters into short-term leases for certain office premises. As at December 31, 2023 and 2022, the portfolio of short-term leases was similar to the portfolio of short-term leases to which the short-term leases expense is disclosed above. (d) There were no addition of ROU assets during the financial years ended December 31, 2023 and 2022. (e) Lease liabilities Schedule of lease liabilities 2022 2022 (US$) (US$) Current 192,282 185,764 Non-current 1,974,524 2,071,571 Lease liabilities 2,166,806 2,257,335

Trade and other payables

Trade and other payables	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Notes and other explanatory information [abstract]
Trade and other payables	16. Trade and other payables Schedule of trade and other payables Unaudited June 30, 2024 December 31, 2023 US$ US$ Trade payables - Non-related parties 331,541 528,865 Trade payables 331,541 528,865 Other payables - Amount due to shareholders 331,248 189,595 - Contract liabilities 1,133,784 2,077,358 - Amount due to directors 1,127,472 910,541 - Deposit from customers - - - Accruals and other payables 2,543,992 2,837,205 - Goods and services tax payable 22,596 6,340 - Withholding tax 12,845 10,655 Other payables 5,171,937 6,031,694 Trade and other payables 5,503,478 6,560,559	16. Trade and other payables Schedule of trade and other payables 2023 2022 US$ US$ Trade payables - Non-related parties 528,865 525,588 Trade payables 528,865 525,588 Other payables - Amount due to shareholder 189,595 - - Contract liabilities 2,077,358 2,162,274 - Amount due to directors 910,541 927,885 - Deposit from customers - 19,411 - Accruals for operating expenses 2,837,205 645,861 - Goods and services tax payable 6,340 50 - Withholding tax 10,655 4,276 Other payables 6,031,694 3,759,757 Trade and other payables 6,560,559 4,285,345 The amounts due to directors are non-trade in nature, unsecured, bear interests at 6 48,671 8,893 The contract liabilities primarily relate to the advance consideration received from customers for unsatisfied performance obligations. The Company recognizes revenue for each respective performance obligation when control of the product or service transfers to the customer and the right to payment becomes unconditional. In 2023, US$ 85,536 544,311 ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022

Borrowings

Borrowings	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Notes and other explanatory information [abstract]
Borrowings	17. Borrowings Schedule of borrowings term loan Unaudited June 30, 2024 December 31, 2023 US$ US$ Term loan I (i) 157,980 201,945 Term loan IV (iii) 238,778 378,323 Term loan V (iv) 276,040 426,589 Term loan VI (v) 713,103 924,276 Term loan VII (vi) 1,765,182 2,014,258 Trade receivables financing 71,074 81,231 Revolving credit 1,450,129 1,751,857 Total borrowings 4,672,286 5,778,479 Details of the repayment schedule in respect of the interest-bearing borrowings are as follows : Schedule of respect of the interest-bearing borrowings trade and other payables Unaudited June 30, 2024 December 31, 2023 US$ US$ Bank borrowings repayable : Within one year or on demand 4,672,286 5,666,160 Within a period of more than one year but not exceeding two years - 112,319 Total Bank borrowings repayable 4,672,286 5,778,479 ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 17. Borrowings (continued) (i) Term loan I was obtained for refinancing the outstanding loan amount in relation to the leasehold land and building of the Group. This loan is repayable by monthly instalments over a 120 2.30 1.30 4.68 5.68 (ii) Term loan II was obtained to finance the construction of the proposed erection of a single user 1-story factory with part 3-story ancillary. This loan is repayable by monthly instalments over a 7 2.65 3.45 3 (iii) Term loan IV was obtained for working capital purposes. This loan is repayable by monthly instalments over a 5 2.00 (iv) Term loan V was obtained for working capital purposes. This loan is repayable by monthly instalments over a 5 2 It contains a repayment on demand clause and therefore it is classified as current liabilities as at June 30, 2024 and December 31, 2023. (v) Term loan VI was obtained for purchasing of machineries for core business operations. This loan is repayable by monthly instalments over a 5 2.50 It contains a repayment on demand clause and therefore it is classified as current liabilities as at June 30, 2024 and December 31, 2023. (vi) Term loan VII was obtained as a replacement for Term Loan II and also for working capital purposes. This loan is repayable by monthly instalments over a 3 2.0 It contains a repayment on demand clause and therefore it is classified as current liabilities as at June 30, 2024 and December 31, 2023. (vii) Revolving credit is obtained for working capital purposes. These loans are repayable 1 6 2.00 2.00 During the current financial year, the Group entered into a trade receivables financing agreement with one of its lenders. The arrangement will provide immediate payment of up to 90 10 Security granted The Group’s borrowings are secured by: (a) A legal mortgage on the Group’s leasehold land and buildings with net book value of US$ 16,177,993 (2023: US$ 16,532,686) (Note 10); (b) Several guarantees from a director and a former director of the Group in their personal capacities. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023	17. Borrowings Schedule of borrowings term loan 2023 2022 US$ US$ Term loan I (i) 201,945 271,035 Term loan II (ii) - 1,266,912 Term loan IV (iii) 378,323 626,714 Term loan V (iv) 426,589 697,233 Term loan VI (v) 924,276 1,278,261 Term loan VII (vi) 2,014,258 - Trade receivables financing 81,231 - Revolving credit 1,751,857 1,658,486 Total borrowings 5,778,479 5,798,641 2023 2022 US$ US$ Analysed as : Non-current portion 112,319 371,103 Current portion 5,666,160 5,427,538 Total borrowings 5,778,479 5,798,641 Details of the repayment schedule in respect of the interest-bearing borrowings are as follows : Schedule of respect of the interest-bearing borrowings trade and other payables 2023 2022 US$ US$ Bank borrowings repayable : Within one year or on demand 5,666,160 5,427,538 Within a period of more than one year but not exceeding two years 112,319 371,103 Total Bank borrowings repayable 5,778,479 5,798,641 (i) Term loan I was obtained for refinancing the outstanding loan amount in relation to the leasehold land and building of the Group. This loan is repayable by monthly instalments over a 120 2.30 1.30 4.68 5.68 During the current financial year, the Group entered into a trade receivables financing agreement with one of its lenders. The arrangement will provide immediate payment of up to 90 10 ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022 17. Borrowings (continued) (ii) Term loan II was obtained to finance the construction of the proposed erection of a single user 1-story factory with part 3-story ancillary. This loan is repayable by monthly instalments over a 7 2.65 3.45 3 (iii) Term loan IV was obtained for working capital purposes. This loan is repayable by monthly instalments over a 5 2.00 (iv) Term loan V was obtained for working capital purposes. This loan is repayable by monthly instalments over a 5 2 (v) Term loan VI was obtained for purchasing of machineries for core business operations. This loan is repayable by monthly instalments over a 5 2.50 (vi) Term loan VII was obtained as a replacement for Term Loan II and also for working capital purposes. This loan is repayable by monthly instalments over a 3 2.0 (vii) Revolving credit is obtained for working capital purposes. These loans are repayable 1 6 2.00 2.00 Security granted The Group’s borrowings are secured by: (a) A legal mortgage on the Group’s leasehold land and buildings with net book value of US$ 16,532,686 17,105,459 (b) Several guarantees from a director and a former director of the Group in their personal capacities.

Deferred tax

Deferred tax	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Notes and other explanatory information [abstract]
Deferred tax	18. Deferred tax Schedule of deferred tax assets and liabilities Unaudited June 30, 2024 December 31, 2023 US$ US$ Deferred tax assets recognized - - Deferred tax liabilities recognized 298,000 296,000 Net deferred tax liabilities 298,000 296,000 The movement in deferred tax liabilities (prior to offsetting of balances) during the financial year is as follows: Schedule of deferred tax liabilities Unaudited June 30, 2024 December 31, 2023 US$ US$ Balance as at beginning of financial year 296,000 163,000 Movements in deferred tax liabilities 2,000 133,000 Balance as at end of financial year 298,000 296,000	18. Deferred tax Deferred tax assets and liabilities are offset when there is legally enforceable right to offset current income tax assets against current income tax liabilities and when the deferred taxes relate to the same taxation authority. The Group’s deferred tax liabilities arose mainly from differences in depreciation for tax and revaluation of leasehold properties whilst deferred tax assets arose from tax losses carried forward. As at December 31, 2023, the Group has tax losses of approximately US$ NIL 442,000 Schedule of deferred tax assets and liabilities 2023 2022 US$ US$ Deferred tax assets recognized - 75,070 Deferred tax liabilities recognized 296,000 238,070 Net deferred tax liabilities 296,000 163,000 ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022 18. Deferred tax (continued) The movement in deferred tax liabilities (prior to offsetting of balances) during the financial year is as follows: Schedule of deferred tax liabilities 2023 2022 US$ US$ Balance as at beginning of financial year 163,000 155,000 Movements in deferred tax liabilities 133,000 8,000 Balance as at end of financial year 296,000 163,000

Share capital

Share capital	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Notes and other explanatory information [abstract]
Share capital	19. Share capital Schedule of share capital June 30, 2024 December 31, 2023 No. of ordinary shares 22,683,039 12,683,039 ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023	19. Share capital Schedule of share capital 2023 2022 No. of ordinary shares 12,683,039 10,000 Pursuant to the terms of the Merger Agreement, the aggregate consideration paid at the closing of the Business Combination to existing shareholders of the ESGH was 6,764,150 10.00 In addition, at the closing of the Business Combination and after giving effect to the payments to GUCC’s redeeming stockholders, 4,100,804 Subsequent to the Business Combination and pursuant to an agreement for an OTC Equity Prepaid Forward Transaction (the “Forward Purchase Agreement”) with ACM ARRT K LLC (“ACM”) and Vellar Opportunities Fund Master Ltd (“Vellar”) dated July 27, 2023, ESGL issued 1,268,085 550,000 ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022

Group information

Group information	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Group information	20. Group information Subsidiaries The consolidated financial statements of the Group include : Schedule of consolidated financial statements Place of incorporation Effective equity held by the Name of subsidiary Principal activities and business Group 2024 2023 % % Held by the Company Environmental Solutions Group Holdings Limited Investment holding company Cayman Island 100 100 Held by Subsidiary Environmental Solutions Asia Holdings Limited Investment holding company British Virgin Islands 100 100 Environmental Solutions (Asia) Pte Ltd Waste management and recycling of industrial wastes Singapore 100 100	22. Group information Subsidiaries The consolidated financial statements of the Group include : Schedule of consolidated financial statements Name of subsidiary Principal activities Place of incorporation and business Effective equity held by the Group 2023 2022 % % Held by the Company Environmental Solutions Group Holdings Limited Investment holding company Cayman Island 100 100 Held by Subsidiary Environmental Solutions Asia Holdings Limited Investment holding company British Virgin Islands 100 100 Environmental Solutions (Asia) Pte Ltd Waste management and recycling of industrial wastes Singapore 100 100 ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022

General information and reorgan

General information and reorganization transactions	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
General Information And Reorganization Transactions
General information and reorganization transactions	1. General information ESGL Holdings Limited ESGL Holdings Limited (“ESGL” or the “Company”) was incorporated in the Cayman Islands on November 18, 2022. Following the successful completion of a business combination on August 3, 2023, ESGL listed on Nasdaq and is a publicly traded company. ESGL’s stock commenced trading August 4, 2023. ESGL’s subsidiaries are as follows: Environmental Solutions Group Holdings Limited Environmental Solutions Group Holdings Limited is a holding company incorporated under the laws of the Cayman Islands as an exempted company with limited liability on June 14, 2022. The address of its registered office is 71 Fort Street, PO Box 500, George Town, Grand Cayman, KY1-1106, Cayman Islands. As a holding company with no material operations of its own, ESGH conducts all of its operations through its operating entity incorporated in Singapore, Environmental Solutions (Asia) Pte. Ltd. Environmental Solutions Asia Holdings Limited (“ESAH”) ESAH, a wholly-owned subsidiary of the ESGH, was incorporated on June 29, 2022 and domiciled in the British Virgin Islands with its registered office at Mandar House, 3 rd Environmental Solutions (Asia) Pte. Ltd. (“ESA”) ESA was incorporated and domiciled in Singapore, with its registered office at 101 Tuas, South Avenue 2, Singapore 637226. ESA is a waste management, treatment and recycling company involved in the collection and recycling of hazardous and non-hazardous industrial waste from customers such as pharmaceutical, semiconductor, petrochemical and electroplating companies. As ESGL, ESGH, ESAH and ESA (collectively the “Group”) were under common control, the Merger constituted a reorganization under common control and are required to be retrospectively applied to the consolidated financial statements at their historical amounts. The consolidated financial statements have been prepared as if the existing corporate structure had been in existence throughout all periods. This includes a retrospective presentation for all equity related disclosures, including issued shares, which have been revised to reflect the effects of the reorganization in accordance with International Financial Reporting Standards (“IFRS”) as of June 30, 2024 and 2023.	1. General information and reorganization transactions On November 29, 2022, Genesis Unicorn Capital Corp (“GUCC”), entered into an agreement and plan of merger (the “Merger Agreement”) with ESGL Holdings Limited (“ESGL”), ESGH Merger Sub Corp (“Merger Sub”), Environmental Solutions Group Holdings Limited (“ESGH”), and Quek Leng Chuang, solely in his capacity as the shareholder representative, agent and attorney-in-fact of the shareholders (the “Shareholder Representative”). Upon the closing of the transactions contemplated by the Merger Agreement, (a) GUCC will be merged with and into ESGL (the “Reincorporation Merger”), with ESGL surviving the Reincorporation Merger, and (b) Merger Sub will be merged with and into the ESGH (the “Acquisition Merger”), with ESGH surviving the Acquisition Merger as a direct wholly owned subsidiary of ESGL (collectively, the “Merger” or the “Business Combination”). The Business Combination was successfully completed on August 3, 2023. Following which, ESGL is a publicly traded company listed on Nasdaq. ESGL’s stock commenced trading August 4, 2023. Genesis Unicorn Capital Corp GUCC was incorporated as a Delaware corporation on February 23, 2021. It is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more target businesses. ESGL Holdings Limited ESGL Holdings Limited (“ESGL” or the “Company”) was incorporated in the Cayman Islands on November 18, 2022 for the sole purpose of the Reincorporation Merger. Following the consummation of the Reincorporation Merger, GUCC will have merged with and into ESGL, with ESGL as the surviving publicly traded entity. Environmental Solutions Group Holdings Limited Environmental Solutions Group Holdings Limited (“ESGH”) is a holding company incorporated under the laws of the Cayman Islands as an exempted company with limited liability on June 14, 2022. The address of its registered office is 71 Fort Street, PO Box 500, George Town, Grand Cayman, KY1-1106, Cayman Islands. As a holding company with no material operations of its own, ESGH conducts all of its operations through its operating entity incorporated in Singapore, Environmental Solutions (Asia) Pte. Ltd. Environmental Solutions Asia Holdings Limited (“ESAH”) ESAH, a wholly-owned subsidiary of the ESGH, was incorporated on June 29, 2022 and domiciled in the British Virgin Islands with its registered office at Mandar House, 3 rd Environmental Solutions (Asia) Pte. Ltd. (“ESA”) ESA was incorporated and domiciled in Singapore, with its registered office at 101 Tuas, South Avenue 2, Singapore 637226. ESA is a waste management, treatment and recycling company involved in the collection and recycling of hazardous and non-hazardous industrial waste from customers such as pharmaceutical, semiconductor, petrochemical and electroplating companies. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 1. General information and reorganization transactions (continued) ESGH Merger Sub Corp ESGH Merger Sub Corp was incorporated under the laws of the Cayman Islands as an exempted company with limited liability on November 18, 2022 and is a wholly-owned subsidiary of ESGL formed to consummate the Business Combination. Following the consummation of the Business Combination, Merger Sub will have merged with and into ESGH, with ESGH surviving the merger as a wholly-owned subsidiary of ESGL. As ESGL, ESGH, ESAH and ESA (collectively the “Group”) were under common control, the Merger constituted a reorganization under common control and are required to be retrospectively applied to the consolidated financial statements at their historical amounts. The consolidated financial statements have been prepared as if the existing corporate structure had been in existence throughout all periods. This includes a retrospective presentation for all equity related disclosures, including issued shares, which have been revised to reflect the effects of the reorganization in accordance with International Financial Reporting Standards (“IFRS”) as of December 31, 2023 and 2022. The financial statements were authorized for issuance by the Directors on May 15, 2024. GUCC will be treated as the acquired company for accounting purposes, whereas ESGH will be treated as the accounting acquirer. Because GUCC does not meet the accounting definition of a business, the Business Combination will be treated as the equivalent of ESGH issuing stock for the net assets of GUCC, accompanied by a recapitalization. The net assets of ESGH will be stated at historical cost, with no goodwill or other intangible assets recorded, and the historical results of operations prior to the Business Combination will be those of ESGH. ESGH has been determined to be the accounting acquirer for purposes of the Business Combination based on an evaluation of the following facts and circumstances: (i) After the close of the business combination, persons affiliated with ESGH are expected to control a majority of the combined company’s board of directors; (ii) ESGH shareholders have the largest voting interest under both redemption scenarios; (iii) ESGH is the largest entity based on the entity’s operations and number of employees (iv) ESGH’s operations prior to the Business Combination will comprise the ongoing operations of the Combined Company; and (v) ESGH’s existing executive officers and senior management team will comprise the executive officers and senior management team of the Combined Company. The Business Combination, which is not within the scope of IFRS 3 (Business Combination) since GUCC does not meet the definition of a business in accordance with IFRS 3 (Business Combination), is accounted for within the scope of IFRS 2 (Share-Based Payment). Any excess of fair value of the consideration shares issued over the fair value of GUCC’s identifiable net assets acquired represents a listing fee for the service of a stock exchange listing for its shares and is expensed as incurred.

Related party transactions

Related party transactions	12 Months Ended
	Dec. 31, 2023
Notes and other explanatory information [abstract]
Related party transactions	20. Related party transactions (a) Directors’ remuneration Schedule of related party transactions 2023 2022 US$ US$ Salaries and bonuses 255,471 195,654 Directors’ fees 52,252 - Personal guarantee fee - 152,689 Employer’s contribution to the Central Provident Fund 17,188 16,199 Total Directors remuneration 324,911 364,542 (b) Key management personnel compensation 2023 2022 US$ US$ Salaries and bonuses 229,840 92,451 Employer’s contribution to the Central Provident Fund 22,826 8,806 Total key management personnel compensation 252,666 101,257 ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022

Capital commitments

Capital commitments	12 Months Ended
	Dec. 31, 2023
Notes and other explanatory information [abstract]
Capital commitments	21. Capital commitments Capital expenditures contracted for at the end of the reporting period but not recognized in the financial statements are as follows: Schedule of capital expenditures 2023 2022 US$ US$ Property, plant and equipment 1,328,306 1,339,532

Financial risk management

Financial risk management	12 Months Ended
	Dec. 31, 2023
Notes and other explanatory information [abstract]
Financial risk management	23. Financial risk management Financial risk factors The Group’s activities expose it to market risk (including currency risk, price risk and interest rate risk), credit risk, liquidity risk and capital risk. The Directors review and agree to the policies and procedures for the management of these risks, which are executed by the management team. It is and has been throughout the current and previous financial year, the Group’s policy that no trading in derivatives for speculative purposes shall be undertaken. The following sections provide details regarding the Group’s exposure to the abovementioned financial risks and the objectives, policies, and processes for the management of these risks. There has been no change to the Group’s exposure to these financial risks or the manner in which it manages and measures the risks. (a) Market risk (i) Currency risk Currency risk arises from sales or purchases that are denominated in currencies other than the functional currency of the Group. The foreign currency in which these transactions are denominated is mainly Singapore Dollar (“SGD”). The Group does not have a policy to hedge its exposure to foreign exchange risk. The Group’s currency exposure based on the information provided to key management is as follows: Schedule of currency exposure SGD USD Total US$ US$ US$ December 31, 2023 Financial assets Cash and cash equivalents 248,391 118,370 366,761 Trade and other receivables 1,001,109 31,413 1,032,522 Prepaid forward purchase agreement - 969 969 Financial assets 1,249,500 150,752 1,400,252 Financial liabilities Trade and other payables 5,189,728 1,370,831 6,560,559 Borrowings 5,778,479 - 5,778,479 Deferred underwriting fee payable - 2,753,125 2,753,125 Lease liabilities 2,166,806 - 2,166,806 Financial liabilities 13,135,013 4,123,956 17,258,969 Net financial liabilities (11,885,513 ) (3,973,204 ) (15,858,717 ) Currency exposure of financial liabilities, net of those denominated in the Company’s functional currency (11,885,513 ) (3,973,204 ) (15,858,717 ) Net financial (liabilities)/assets ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022 23. Financial risk management (continued) (a) Market risk (continued) (i) Currency risk SGD USD Total US$ US$ US$ December 31, 2022 Financial assets Cash and cash equivalents 118,411 133,985 252,396 Trade and other receivables 747,634 67,494 815,128 Financial assets 866,045 201,479 1,067,524 Financial liabilities Trade and other payables 3,972,893 312,452 4,285,345 Borrowings 5,798,641 - 5,798,641 Lease liabilities 2,257,335 - 2,257,335 Financial liabilities 12,028,869 312,452 12,341,321 Net financial (liabilities)/assets (11,162,824 ) (110,973 ) (11,273,797 ) ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022 23. Financial risk management (continued) (a) Market risk (i) Currency risk If the USD changes against the SGD by 10 10 Schedule of tax rate effect 2023 2022 Increase/(decrease) in profit or loss before tax 2023 2022 US$ US$ SGD against USD - strengthened (1,188,551 ) (1,116,282 ) - weakened 1,188,551 1,116,282 Total Currency risk 1,188,551 1,116,282 (ii) Interest rate risk The Group is exposed to interest rate risk on its non-current borrowings at variable rates. The Group’s borrowings at variable rates are denominated mainly in SGD. At December 31, 2023, if the SGD interest rates had increased/decreased by 0.5 0.5 18,831 18,554 (b) Credit risk Credit risk refers to the risk that counterparty will default on its contractual obligation, resulting in financial loss to the Group. (i) Risk management The Group has adopted the following policy to mitigate its credit risk. The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group performs ongoing credit evaluation of its counterparties’ financial conditions and generally does not require collateral. Financial assets are potentially subject to concentrations of credit risk and failures by counterparties to discharge their obligations in full or in a timely manner. These arise principally from cash and cash equivalents, receivables and other financial assets. The maximum exposure to credit risk is the total of the fair value of the financial assets at the end of the reporting year. Credit risk on cash balances with banks and any other financial instruments is limited because the counter-parties are entities with acceptable credit ratings. ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022 23. Financial risk management (continued) (b) Credit risk (ii) Impairment of trade receivables The Group has applied the simplified approach by using the provision matrix to measure the lifetime ECL for trade receivables and the general approach for other financial assets at amortized cost. Trade receivables The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer rather than the industry or country in which the customers operate and therefore significant concentrations of credit risk primarily arise when the Group has significant exposure to individual customers. At the end of the financial year, 58.8 48.0 Individual credit evaluations are performed on all customers. These evaluations focus on the customer’s past history of making payments when due and current ability to pay, and take into account information specific to the customer as well as pertaining to the economic environment in which the customer operates. Unless agreed the otherwise, trade receivables are generally due within 30 days from the date of billing. Normally, the Group does not obtain collateral from customers. The Group measures loss allowances for trade receivables at an amount equal to lifetime ECLs, which is calculated with reference to the credit spread for each of the groupings (which taking into consideration of historical credit loss experience, average actual date of receipt, customers’ background, listing status and size as groupings of various debtors), which reflect the credit risk of the debtors, over the expected life of the debtors and are adjusted for forward-looking information that is available without undue cost or effort. As the Group’s historical credit loss experience does not indicate significantly different loss patterns for different customer segments, the loss allowance based on past due status is not further distinguished between the Group’s different customer bases. The following table provides information about the Group’s exposure to credit risk and ECLs for trade receivables: Schedule of group’s exposure to credit risk and ECLs for trade receivables 2023 Gross Expected carrying Loss loss amount allowance rate US$ US$ Current (not past due) 0 % 406,305 - Less than 3 months past due 5 % 59,333 3,218 3 months to 6 months past due 0 % - - More than 6 months past due 100 % 43,550 43,550 509,188 46,768 ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022 23. Financial risk management (continued) (b) Credit risk (ii) Impairment of trade receivables (continued) 2022 Expected Gross loss carrying Loss rate amount allowance US$ US$ Current (not past due) 0 % 363,164 - Less than 3 months past due 66 % 71,136 46,768 3 months to 6 months past due 0 % 2,116 - More than 6 months past due 0 % - - 436,416 46,768 Expected loss rates are based on actual loss experience. These rates are adjusted to reflect differences between economic conditions during the period over which the historic data has been collected, current conditions and the Group’s view of economic conditions over the expected lives of the receivables. The movements in loss allowance for trade receivables during the years are as follows:- Schedule of movements in loss allowance for trade receivables 2023 2022 US$ US$ At January 1 46,768 150,000 Impairment losses recognized (Note 3) - 46,768 Amount written off as uncollectible - 150,000 At December 31 46,768 46,768 Other financial assets, at amortized cost The Group’s other financial assets recognized at amortized cost are mainly comprised of cash and bank balances, non-trade receivables from non-related parties, deposits and prepayments. These other financial assets are subject to immaterial credit loss. In determining the ECL, management has taken into account the historical default experience and the financial position of the counterparties, adjusted for factors that are specific to these receivables in estimating the probability of default of each of these other financial assets. ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022 23. Financial risk management (continued) (c) Liquidity risk The table below analyses non-derivative financial liabilities of the Group based on the remaining period from December 31, 2022 to the contractual maturity date. The amounts disclosed in the table below are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying amounts as the impact of discounting is not significant. Schedule of liquidity risk Less than Between 2 and 5 years US$ More than At December 31,2023 Trade and other payables 6,540,559 - - Deferred underwriting fee payable 2,753,125 - - Borrowings 5,953,741 112,880 - Lease liabilities 192,282 256,215 1,718,309 Financial liabilities 15,439,707 369,095 1,718,309 At December 31,2022 Trade and other payables 4,285,345 - - Borrowings 5,579,034 376,708 - Lease liabilities 185,764 329,200 1,742,371 10,050,143 705,908 1,742,371 (d) Capital risk The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and a net current asset position to support its business and maximize its shareholders’ value. The capital structure of the Group comprises of issued share capital and retained earnings. The Group manages its capital structure and makes adjustments in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Group is in compliance with all externally imposed capital requirements for the financial years ended December 31, 2023 and 2022. (e) Fair value measurements The notional amounts of financial assets and financial liabilities with a maturity of less than one year are assumed to approximate their fair values. The fair value of the non-trade balances with the related parties has not been determined as the timing of the expected cash flows of these balances cannot be reasonably determined because of the relationship. ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022 23. Financial risk management (continued) (f) Warrants As of December 31, 2023, ESGL has 8,625,000 377,331 11.50 ESGL may redeem the outstanding warrants (excluding the private warrants that are part of the Private Placement Units), in whole and not in part, at a price of $ 0.01 ● at any time while the warrants are exercisable, ● upon a minimum of 30 days’ prior written notice of redemption, ● if, and only if, the last sales price of ESGL ordinary shares equals or exceeds $18.00 per share for any 20 trading days within a 30 trading day period ending three business days before ESGL sends the notice of redemption ● if, and only if, there is a current registration statement in effect with respect to ESGL ordinary shares underlying the warrants at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until the date of redemption. As of December 31, 2023, none of the warrants have been exercised. Based on the closing price of warrants as at December 31, 2023 of US$ 0.0038, 34,200 (g) Financial Instruments by Category The carrying amounts of the different categories of financial instruments are as follows: Schedule of financial instruments 2023 2022 US$ US$ Financial assets, at amortised cost 874,477 480,318 Financial liabilities, at amortised cost 15,150,956 9,529,631

Forward Purchase Agreements (_F

Forward Purchase Agreements (“FPA”)	12 Months Ended
	Dec. 31, 2023
Forward Purchase Agreements
Forward Purchase Agreements (“FPA”)	24. Forward Purchase Agreements (“FPA”) On July 27, 2023, the Company, ESGL entered into an agreement (“Forward Purchase Agreement”) with Vellar Opportunities Fund Master, Ltd. (“Vellar”) for an OTC Equity Prepaid Forward Transaction. On the same date as the execution of the Forward Purchase Agreement, Vellar assigned and novated 50% The primary purpose of entering into the Forward Purchase Agreement was to provide cash to ESGL following the closing of the Business Combination (the “Closing”). For purposes of the Forward Purchase Agreement, ESGL is referred to as the “Counterparty”. Pursuant to the terms of the Forward Purchase Agreement, each Seller intended, but was not obligated, to purchase up to 2,200,000 4,400,000 931,915 500,000 ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022 24. Forward Purchase Agreements (“FPA”) (continued) The Forward Purchase Agreement provides that each Seller be paid directly an aggregate cash amount (the “Prepayment Amount”) equal to the product of (i) the number of Recycled Shares set forth in a Pricing Date Notice delivered by that Seller and (ii) the redemption price paid by the Company at Closing to holders of its common stock who exercised their redemption rights in connection with the Business Combination (the “Initial Price”). Following the Closing, the Prepayment Amounts of $ 10,141,403.28 5,427,750.00 The Forward Purchase Agreement grants each Seller the right to purchase from the Counterparty additional shares (the “Additional Shares”) up to an amount equal to the difference between the number of Recycled Shares for such Seller and 2,200,000 1,268,085 550,000 The valuation date (the “Valuation Date”) for each Forward Purchase Agreement will be the earliest to occur of (a) the date that is 24 months after the Closing, (b) the date specified by the Seller in a written notice to be delivered to the Counterparty at Seller’s discretion (which Valuation Date shall not be earlier than the day such notice is effective) after the occurrence of any of (w) a VWAP Trigger Event (x) a Delisting Event, or (y) a Registration Failure and (c) the date specified by the Seller in a written notice to be delivered to Counterparty at the Seller’s sole discretion (which Valuation Date shall not be earlier than the day such notice is effective). In connection with the occurrence of the Valuation Date, each Seller will pay to the Counterparty an amount in cash based on the value of the Ordinary Shares over a Valuation Period (the “Settlement Amount”). The Valuation Period begins on the business day after the Valuation Date and ends on the date on which the number of shares traded over the Valuation Period equals ten times the Number of Shares. The Seller will pay the Settlement Amount on the Cash Settlement Payment Date, which is the 30th business day immediately following the last day of the Valuation Period. The determination of the Settlement Amount depends upon the trigger for the Valuation Date. In the event the Valuation Date is determined by Seller delivering to Counterparty written notice at its sole discretion, the Settlement Amount will equal (1) the Number of Shares as of the Valuation Date multiplied by (2) the closing price of the Shares on the immediately preceding trading day. In all other cases, the Settlement Amount will equal (1) the Number of Shares as of the Valuation Date that are registered for resale under an effective Registration Statement or may be transferred without any restrictions (including the current public information requirement or the volume and manner of sale limitations under Rule 144 under the Securities Act) multiplied by the average of the daily VWAP Price over the Valuation Period less (2) the Settlement Amount Adjustment. The Settlement Amount Adjustment is equal to the product of (1) (a) the Maximum Number of Shares less (b) any Terminated Shares as of the Valuation Date, multiplied by (2) $2.00. On one occasion, during the period beginning 30 days after the Closing Date and ending on the Valuation Date, Counterparty may request in writing that each Seller provide it with additional funding of up to $ 1,000,000 2,000,000 ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022 24. Forward Purchase Agreements (“FPA”) (continued) On September 15, 2023, the Company requested Additional Funds from Vellar in the amount of $ 1,000,000 1,000,000 Each Seller agreed to waive any redemption rights with respect to any Recycled Shares in connection with the Business Combination and agreed not to vote the shares it purchases pursuant to the Forward Purchase Agreement in favor of the Business Combination. Each Forward Purchase Agreement has been structured, and all activity in connection with such agreement has been undertaken, to comply with the requirements of all tender offer regulations applicable to the Business Combination, including Rule 14e-5 under the Securities Exchange Act of 1934. On November 16, 2023, ESGL received written notice from ARRT that the Valuation Date of the Forward Purchase Agreement with ARRT shall be deemed to be November 16, 2023, as a result of the occurrence of a Registration Failure due to a failure to have an effective registration statement as of 90 days following the date of ARRT’s registration request (which was August 16, 2023). In no event will any additional cash amounts be paid by the Sellers, including ARRT as a result of accelerating the maturity date as described above, or ESGL at the Valuation Date or otherwise. On or about December 4, 2023, ESGL and ARRT mutually agreed to terminate the Forward Purchase Agreement. ARRT will continue to hold all 1,050,000 no Subsequent to the year end, ESGL received written notice from Vellar that the Valuation Date of the Forward Purchase Agreement with Vellar shall be deemed March 14, 2024 for the same reason stated above. ESGL and Vellar mutually agreed to terminate the agreement on March 21, 2024. On March 22, 2024, ESGL and Vellar entered into a Valuation Period Agreement pursuant to which the parties agreed that the Valuation Period concluded at 4:00 p.m. on March 21, 2024 and the Number of Shares as of the Valuation Date was equal to 52,641 2,200,000 2,147,359 52,641 0.45 4,400,000 2.00 ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022

Listing expenses

Listing expenses	12 Months Ended
	Dec. 31, 2023
Listing Expenses
Listing expenses	25. Listing expenses Listing expenses were non-recurring expenses incurred in connection with the Business Combination and are as follows: Schedule of listing expenses 2023 2022 US$ US$ Share issued as consideration 67,641,500 - Net assets of SPAC (590,526 ) - Revaluation of FPA 24,241,261 - Professional fees 1,680,198 981,701 Printing, courier, and others 94,891 - Listing expenses 93,067,324 981,701 Total Quantity Price Amount Issuance of shares 6,764,150 10.00 67,641,500

New or revised IFRSs not yet ad

New or revised IFRSs not yet adopted	12 Months Ended
	Dec. 31, 2023
New or revised IFRSs not yet adopted	26. New or revised IFRSs not yet adopted Effective for annual reporting periods beginning on or after Amendments to IFRS 16 Lease liability in a Sale and Leaseback January 1, 2024 Amendments to IAS 1 Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants January 1, 2024 Amendments to IAS 7 and IFRS 7 Amendments to IAS 21 Disclosure: Supplier Finance Arrangements Lack of exchangeability January 1, 2024 January 1, 2025 The directors anticipate that the application of all new and amendments to IFRSs will have no material impact on the financial statements in the foreseeable future. ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022

Subsequent events

Subsequent events	12 Months Ended
	Dec. 31, 2023
Notes and other explanatory information [abstract]
Subsequent events	27. Subsequent events 1) Termination of FPA by Vellar On March 21, 2024, the Company received a termination notice from Vellar, dated March 14, 2024, pursuant to the Forward Purchase Agreement. Pursuant to the termination notice, Vellar notified the Company that the Valuation Date was March 15, 2024 as a result of the occurrence of a VWAP Trigger Event. On March 22, 2024, the Company and Vellar entered into a Valuation Period Agreement pursuant to which the parties agreed that the Valuation Period concluded at 4:00 p.m. on March 21, 2024 and the Number of Shares as of the Valuation Date was equal to 52,641 2,200,000 2,147,359 52,641 0.45 4,400,000 2.00 2) Private placement of 10 million shares On March 27, 2024, the Company entered into a Share Purchase Agreement dated March 27, 2024 (the “Purchase Agreement”) with an accredited investor (the “Purchaser”), pursuant to which the Company shall issue in a private placement up to an aggregate of 10,000,000 0.25 2,000,000 8,000,000 2,500,000 3) Application to transfer to Nasdaq Capital Market On October 24, 2023, ESGL Holdings Limited (the “Company”) received notification letters dated October 24, 2023, from the Staff of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that (i) the minimum bid price per share was below $1.00 for a period of 30 consecutive business days and that the Company did not meet the minimum bid price requirement set forth in Nasdaq Listing Rule 5450(a)(1) (the “Minimum Bid Price Rule”), and (ii) the Company’s Minimum Market Value of Publicly Held Shares (“MVPHS”) was less than $5,000,000 for the last 30 consecutive business days prior to the date of the notification letter, which does not meet the requirement for continued listing set forth in Nasdaq Listing Rule 5450(b)(1)(C) (the “MVPHS Rule”). In accordance with Nasdaq Listing Rule 5810(c)(3)(A) and 5810(c)(3)(D), Nasdaq provided the Company with 180 calendar days, or until April 22, 2024 (the “Compliance Period”), to regain compliance with the Minimum Bid Price Rule and the MVPHS Rule. The Company did not regain compliance with the Minimum Bid Price Rule or the MVPHS Rule by April 22, 2024, the end of the Compliance Period. Accordingly, on April 19, 2024, the Company applied to transfer the Company’s securities to the Nasdaq Capital Market (the “Capital Market”) by submitting an on-line transfer application and paying a non-refundable $5,000 application fee to Nasdaq. The Company also provided written notice to Nasdaq of its intention to cure the deficiency during the second 180-day compliance period, if granted, including by effecting a reverse stock split, if necessary. On May 2, 2024, the Company receives notification from Nasdaq that its application to transfer to Capital Market is approved. The Company’s securities will be transferred to the Capital Market at the opening of business on May 3, 2024, and the Company will be eligible for an additional 180 calendar day period, or until October 21, 2024, to regain compliance. If at any time during this additional time period the closing bid price of the Company’s security is at least $1 per share for a minimum of 10 consecutive business days, Nasdaq will provide written confirmation of compliance and this matter will be closed.

Loss per share

Loss per share	12 Months Ended
	Dec. 31, 2023
Notes and other explanatory information [abstract]
Loss per share	28. Loss per share Loss per share is computed by dividing net loss by the weighted average number of the Company’s common shares outstanding during the period. Loss per share calculation for the period prior to the Business Combination has been retrospectively restated to the equivalent number of shares reflecting the ratio established during the Business Combination. Schedule of loss per share 2023 2022 US$ US$ Calculation of basic earnings per share: Net loss (94,979,338 ) (2,391,812 ) Loss attributable to ordinary shareholders (94,979,338 ) (2,391,812 ) Weighted average number of ordinary shares 6,466,527 6,378,267 Basic and diluted loss per share (14.69 ) (0.37 )

Comparative information

Comparative information	12 Months Ended
	Dec. 31, 2023
Comparative information	29. Comparative information Professional fees amounting to US$ 981,701

Basis of preparation (Policies)

Basis of preparation (Policies)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Basis Of Preparation
Basis of Consolidation	2.2 Basis of Consolidation The financial statements are presented in United States Dollars (“US$”), which is the Group’s functional currency. All financial information presented in United States Dollars has been rounded to the nearest dollar, unless otherwise indicated. The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at June 30, 2024 and 2023. A subsidiary is an entity (including a structured entity), directly or indirectly, controlled by the Company. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee (i.e., existing rights that give the Company the current ability to direct the relevant activities of the investee). When the Company has, directly or indirectly, less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including:- ● Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee); ● Exposure, or rights, to variable returns from its involvement with the investee; and ● The ability to use its power over the investee to affect its returns. The financial statements of 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 Company obtains control, and continue to be consolidated until the date that such control ceases. Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Company has less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including: ● The contractual arrangement(s) with the other vote holders of the investee; ● Rights arising from other contractual arrangements; ● The Company’s voting rights and potential voting rights. The Company assesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Assets, liabilities, income, and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Company gains control until the date the Company ceases to control the subsidiary. Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the parent of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Company loses control over a subsidiary, it derecognizes the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognized in profit or loss. Any investment retained is recognized at fair value. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued)	2.2 Basis of Consolidation The financial statements are presented in United States Dollars (“US$”), which is the Group’s functional currency. All financial information presented in United States Dollars has been rounded to the nearest dollar, unless otherwise indicated. The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at December 31, 2023 and 2022. A subsidiary is an entity (including a structured entity), directly or indirectly, controlled by the Company. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee (i.e., existing rights that give the Company the current ability to direct the relevant activities of the investee). When the Company has, directly or indirectly, less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including:- ● Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee); ● Exposure, or rights, to variable returns from its involvement with the investee; and ● The ability to use its power over the investee to affect its returns. The financial statements of 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 Company obtains control, and continue to be consolidated until the date that such control ceases. Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Company has less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including: ● The contractual arrangement(s) with the other vote holders of the investee; ● Rights arising from other contractual arrangements; ● The Company’s voting rights and potential voting rights. The Company assesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Assets, liabilities, income, and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Company gains control until the date the Company ceases to control the subsidiary. Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the parent of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Company loses control over a subsidiary, it derecognizes the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognized in profit or loss. Any investment retained is recognized at fair value. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued)
Revenue recognition	2.3 Revenue recognition Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. Revenue is recognized when the Group satisfies a performance obligation by transferring a promised good or service to the customer, which is when the customer obtains control of the goods or services. A performance obligation may be satisfied at a point in time or over time. The amount of revenue recognized is the amount allocated to the satisfied performance obligation. Revenue from contracts with customers (a) Rendering of services Revenue from rendering of services is recognized when the entity satisfies the performance obligation at a point in time, generally when the significant acts have been completed and when transfer of control occurs, or for services that are not significant, transactions revenue is recognized as the services are provided. The Group’s primary service consists of collecting and disposing of industrial wastes for its customers. (b) Sale of goods Revenue from sale of goods is recognized at a point in time when the performance obligation is satisfied by transferring a promised good to the customer. Control of the goods is transferred to the customer, generally on delivery of the goods (in this respect, incoterms are considered). Other revenue Interest income Interest income is recognized using the effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or where appropriate, a shorter period. Contract assets The contract assets are for the Group’s rights to consideration for work completed but not billed at the reporting date on its contracts; costs incurred to obtain or fulfil a contract with a customer; and any impairment losses recognized in the reporting year. The contract assets are transferred to the receivables when the right to payment becomes unconditional.	2.3 Revenue recognition Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. Revenue is recognized when the Group satisfies a performance obligation by transferring a promised good or service to the customer, which is when the customer obtains control of the goods or services. A performance obligation may be satisfied at a point in time or over time. The amount of revenue recognized is the amount allocated to the satisfied performance obligation. Revenue from contracts with customers (a) Rendering of services Revenue from rendering of services is recognized when the entity satisfies the performance obligation at a point in time, generally when the significant acts have been completed and when transfer of control occurs, or for services that are not significant, transactions revenue is recognized as the services are provided. The Group’s primary service consists of collecting and disposing of industrial wastes for its customers. (b) Sale of goods Revenue from sale of goods is recognized at a point in time when the performance obligation is satisfied by transferring a promised good to the customer. Control of the goods is transferred to the customer, generally on delivery of the goods (in this respect, incoterms are considered). Other revenue Interest income Interest income is recognized using the effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or where appropriate, a shorter period. Contract assets The contract assets are for the Group’s rights to consideration for work completed but not billed at the reporting date on its contracts; costs incurred to obtain or fulfil a contract with a customer; and any impairment losses recognized in the reporting year. The contract assets are transferred to receivables when the right to payment becomes unconditional.
Government grants	2.4 Government grants Grants from the government are recognized as a receivable at their fair value when there is reasonable assurance that the grant will be received and the Group will comply with all the attached conditions. Government grants receivable are recognized as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis. Government grants relating to expenses are shown separately as other income. Government grants relating to non-monetary assets are deducted against the carrying amount of the non-monetary assets. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued)	2.4 Government grants Grants from the government are recognized as a receivable at their fair value when there is reasonable assurance that the grant will be received and the Group will comply with all the attached conditions. Government grants receivable are recognized as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis. Government grants relating to expenses are shown separately as other income. Government grants relating to non-monetary assets are deducted against the carrying amount of the non-monetary assets. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued)
Property, plant and equipment	2.5 Property, plant and equipment (a) Measurement (i) Property, plant and equipment Property, plant and equipment other than leasehold land and buildings are initially recognized at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses. Leasehold land and buildings are measured at fair value less accumulated depreciation and impairment losses recognized after the date of the revaluation. Valuations are performed frequently to ensure that the fair value of a revalued asset does not differ materially from its carrying amount. Any revaluation surplus is credited to the property revaluation reserve in equity, except to the extent that it reverses a revaluation decrease of the same asset previously recognized in the Statement of Profit or Loss and Other Comprehensive Income, in which case the increase is recognized in the statement of profit or loss. A revaluation deficit is recognized in the statement of profit or loss, except to the extent that it offsets an existing surplus on the same asset recognized in the asset revaluation reserve. An annual transfer from the property revaluation reserve to accumulated losses is made for the difference between depreciation based on the revalued carrying amount of the assets and depreciation based on the assets original cost. Upon disposal, any revaluation reserve relating to that particular asset being sold is transferred to retained profits. (ii) Components of costs The cost of an item of property, plant and equipment initially recognized includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. (b) Depreciation Depreciation is calculated using the straight-line method to allocate depreciable amounts over the estimated useful lives as follows: Schedule of property, plant and equipment depreciation, estimated useful lives Useful lives Leasehold land and buildings Over the lease term period ranging from 2 to 30 years Plant and equipment 3 5 Machineries 2 10 Renovation 5 Motor vehicles 10 Furniture and fittings 5 The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each reporting date. The effects of any revision are recognized in profit or loss when the changes arise. Fully depreciated property, plant and equipment are retained in the financial statements until they are no longer in use. (c) Subsequent expenditure Subsequent expenditure relating to property, plant and equipment that has already been recognized is added to the carrying amount of the asset only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repair and maintenance expenses are recognized in profit or loss when incurred. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued) 2.5 Property, plant and equipment (continued) (d) Disposal On disposal of an item of property, plant and equipment, the difference between the disposal proceeds and its carrying amount is recognized in profit or loss.	2.5 Property, plant and equipment (a) Measurement (i) Property, plant and equipment Property, plant and equipment other than leasehold land and buildings are initially recognized at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses. Leasehold land and buildings are measured at fair value less accumulated depreciation and impairment losses recognized after the date of the revaluation. Valuations are performed frequently to ensure that the fair value of a revalued asset does not differ materially from its carrying amount. Any revaluation surplus is credited to the property revaluation reserve in equity, except to the extent that it reverses a revaluation decrease of the same asset previously recognized in the Statement of Profit or Loss and Other Comprehensive Income, in which case the increase is recognized in the statement of profit or loss. A revaluation deficit is recognized in the statement of profit or loss, except to the extent that it offsets an existing surplus on the same asset recognized in the asset revaluation reserve. An annual transfer from the property revaluation reserve to accumulated losses is made for the difference between depreciation based on the revalued carrying amount of the assets and depreciation based on the assets original cost. Upon disposal, any revaluation reserve relating to that particular asset being sold is transferred to retained profits. (ii) Components of costs The cost of an item of property, plant and equipment initially recognized includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. (b) Depreciation Depreciation is calculated using the straight-line method to allocate depreciable amounts over the estimated useful lives as follows: Schedule of property, plant and equipment depreciation, estimated useful lives Useful lives Leasehold land and buildings Over the lease term period ranging from 2 to 30 years Plant and equipment 3 5 Machineries 2 10 Renovation 5 Motor vehicles 10 Furniture and fittings 5 The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each reporting date. The effects of any revision are recognized in profit or loss when the changes arise. Fully depreciated property, plant and equipment are retained in the financial statements until they are no longer in use. (c) Subsequent expenditure Subsequent expenditure relating to property, plant and equipment that has already been recognized is added to the carrying amount of the asset only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repair and maintenance expenses are recognized in profit or loss when incurred. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued) 2.5 Property, plant and equipment (continued) (d) Disposal On disposal of an item of property, plant and equipment, the difference between the disposal proceeds and its carrying amount is recognized in profit or loss.
Intangible assets	2.6 Intangible assets Intangible assets acquired separately are measured initially at cost. Following initial acquisition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in profit or loss in the year in which the expenditure is incurred. Intangible assets with finite useful lives are amortized over the estimated useful lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method are reviewed at least at each financial year-end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. Amortization is calculated using the straight-line method to allocate depreciable amounts over the estimated useful lives of the assets. The estimated useful lives are as follows: Schedule of intangible assets depreciable, estimated useful lives Useful lives Software 3	2.6 Intangible assets Intangible assets acquired separately are measured initially at cost. Following initial acquisition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in profit or loss in the year in which the expenditure is incurred. Intangible assets with finite useful lives are amortized over the estimated useful lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method are reviewed at least at each financial year-end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. Amortization is calculated using the straight-line method to allocate depreciable amounts over the estimated useful lives of the assets. The estimated useful lives are as follows: Schedule of intangible assets depreciable, estimated useful lives Useful lives Software 3
Borrowing costs	2.7 Borrowing costs Borrowing costs are recognized in profit or loss using the effective interest method.	2.7 Borrowing costs Borrowing costs are recognized in profit or loss using the effective interest method.
Impairment of non-financial assets	2.8 Impairment of non-financial assets Intangible assets, property, plant and equipment and right-of-use assets are tested for impairment whenever there is any objective evidence or indication that these assets may be impaired or when annual impairment testing for an asset is required. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash inflows that are largely independent of those from other assets. If this is the case, the recoverable amount is determined for the cash-generating units (“CGU”) to which the asset belongs. If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference between the carrying amount and recoverable amount is recognized as an impairment loss in profit or loss. An impairment loss for an asset is reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. The carrying amount of this asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of accumulated depreciation) had no impairment loss been recognized for the asset in prior years. A reversal of impairment loss for an asset is credited to profit or loss in the period in which it arises. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued)	2.8 Impairment of non-financial assets Intangible assets, property, plant and equipment and right-of-use assets are tested for impairment whenever there is any objective evidence or indication that these assets may be impaired or when annual impairment testing for an asset is required. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash inflows that are largely independent of those from other assets. If this is the case, the recoverable amount is determined for the cash-generating units (“CGU”) to which the asset belongs. If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference between the carrying amount and recoverable amount is recognized as an impairment loss in profit or loss. An impairment loss for an asset is reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. The carrying amount of this asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of accumulated depreciation) had no impairment loss been recognized for the asset in prior years. A reversal of impairment loss for an asset is credited to profit or loss in the period in which it arises. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued)
Financial assets	2.9 Financial assets (a) Classification and measurement The Group classifies its financial assets at amortized cost. The classification of debt instruments depends on the Group’s business model for managing the financial assets as well as the contractual terms of the cash flows of the financial assets. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. The Group reclassifies debt instruments when and only when its business model for managing those assets changes. At initial recognition At initial recognition, the Group measures a financial asset at its fair value plus, in the case of the financial assets not a fair value through profit or loss, transactions costs that are directly attributable to the acquisition of the financial asset. At subsequent measurement Debt instruments are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt instrument that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in interest income using the effective interest rate method. (b) Impairment of financial assets The Group recognizes a loss allowance for expected credit loss (“ECL”) on financial assets which are subject to impairment under IFRS 9 (including trade and other receivables). The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition. Lifetime ECL represents the ECL that will result from all possible default events over the expected life of the relevant instrument. In contrast, 12-month ECL (“12m ECL”) represents the portion of lifetime ECL that is expected to result from default events that are possible within 12 months after the reporting date. Assessments are done based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current conditions at the reporting date as well as the forecast of future conditions. The Group always recognizes lifetime ECL for trade and other receivables. The ECL on these assets are assessed individually for debtors with significant balances and/or collectively using a provision matrix with appropriate groupings. For all other instruments, the Group measures the loss allowance as equal to 12m ECL, unless there has been a significant increase in credit risk since initial recognition for which the Group recognizes lifetime ECL. The assessment of whether lifetime ECL should be recognized is based on significant increases in the likelihood or risk of a default occurring since initial recognition. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued) 2.9 Financial assets (b) Impairment of financial assets (continued) (i) Significant increase in credit risk In assessing whether the credit risk has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. In particular, the following information is taken into account when assessing whether credit risk has increased significantly: ● An actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating; ● Significant deterioration in external market indicators of credit risk, e.g. a significant increase in the credit spread, or the credit default swap prices for the debtor; ● Existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the debtor’s ability to meet its debt obligations; ● An actual or expected significant deterioration in the operating results of the debtor; ● An actual or expected significant adverse change in the regulatory, economic, or technological environment of the debtor that results in a significant decrease in the debtor’s ability to meet its debt obligations. Irrespective of the outcome of the above assessment, the Group presumes that the credit risk has increased significantly since initial recognition when contractual payments are more than 30 days past due, unless the Group has reasonable and supportable information that demonstrates otherwise. The Group regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant increase in credit risk before the amount becomes past due. (ii) Definition of default For internal credit risk management, the Group considers an event of default occurs when information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the Group, in full (without taking into account any collateral held by the Group). Irrespective of the above, the Group considers that default has occurred when a financial asset is more than 90 days past due unless the Group has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate. (iii) Credit-impaired financial assets A financial asset is credit-impaired when one or more events of default that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following events: (a) Significant financial difficulty of the issuer or the borrower; (b) A breach of contract, such as a default or past due event; (c) The lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession that the lender(s) would not otherwise consider. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued) 2.9 Financial assets (b) Impairment of financial assets (continued) (iii) Credit-impaired financial assets (continued) (d) It is becoming probable that the borrower will enter bankruptcy or other financial reorganization; or (e) The disappearance of an active market for that financial asset because of financial difficulties. (iv) Write-off policy The Group writes off a financial asset when there is information indicating that the counterparty is in severe financial difficulty and there is no realistic prospect of recovery, for example, when the counterparty has been placed under liquidation or has entered into bankruptcy proceedings, or in the case of trade receivables, when the amounts are over one year past due, whichever occurs sooner. Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account legal advice where appropriate. A write-off constitutes a derecognition event. Any subsequent recoveries are recognized in profit or loss. (v) Measurement and recognition of ECL The measurement of ECL is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default) and the exposure to default. The assessment of the probability of default and loss given default is based on historical data adjusted by forward-looking information. Estimation of ECL reflects an unbiased and probability-weighted amount that is determined with the respective risks of default representing the weights. Generally, the ECL is the difference between all contractual cash flows that are due to the Group in accordance with the contract and the cash flows that the Group expects to receive, discounted at the effective interest rate determined at initial recognition. Where ECL is measured on a collective basis or for cases where evidence at the individual instrument level may not yet be available, the financial instruments are grouped on the following basis: ● Nature of financial instruments; ● Past-due status; ● Nature, size and industry of debtors; and ● External credit ratings where available. The groups are regularly reviewed by management to ensure the constituents of each group continue to share similar credit risk characteristics. Interest income is calculated based on the gross carrying amount of the financial asset unless the financial asset is credit impaired, in which case interest income is calculated based on amortized cost of the financial asset. (c) Recognition and derecognition Regular way purchases and sales of financial assets are recognized on the trade date – the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. On disposal of a debt instrument, the difference between the carrying amount and the sale proceeds is recognized in profit or loss. Any amount previously recognized in other comprehensive income relating to that asset is reclassified to profit or loss. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued)	2.9 Financial assets (a) Classification and measurement The Group classifies its financial assets at amortized cost. The classification of debt instruments depends on the Group’s business model for managing the financial assets as well as the contractual terms of the cash flows of the financial assets. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. The Group reclassifies debt instruments when and only when its business model for managing those assets changes. At initial recognition At initial recognition, the Group measures a financial asset at its fair value plus, in the case of the financial assets not a fair value through profit or loss, transactions costs that are directly attributable to the acquisition of the financial asset. At subsequent measurement Debt instruments are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt instrument that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in interest income using the effective interest rate method. (b) Impairment of financial assets The Group recognizes a loss allowance for expected credit loss (“ECL”) on financial assets which are subject to impairment under IFRS 9 (including trade and other receivables). The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition. Lifetime ECL represents the ECL that will result from all possible default events over the expected life of the relevant instrument. In contrast, 12-month ECL (“12m ECL”) represents the portion of lifetime ECL that is expected to result from default events that are possible within 12 months after the reporting date. Assessments are done based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current conditions at the reporting date as well as the forecast of future conditions. The Group always recognizes lifetime ECL for trade and other receivables. The ECL on these assets are assessed individually for debtors with significant balances and/or collectively using a provision matrix with appropriate groupings. For all other instruments, the Group measures the loss allowance as equal to 12m ECL, unless there has been a significant increase in credit risk since initial recognition for which the Group recognizes lifetime ECL. The assessment of whether lifetime ECL should be recognized is based on significant increases in the likelihood or risk of a default occurring since initial recognition. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued) 2.9 Financial assets (b) Impairment of financial assets (continued) (i) Significant increase in credit risk In assessing whether the credit risk has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. In particular, the following information is taken into account when assessing whether credit risk has increased significantly: ● An actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating; ● Significant deterioration in external market indicators of credit risk, e.g. a significant increase in the credit spread, or the credit default swap prices for the debtor; ● Existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the debtor’s ability to meet its debt obligations; ● An actual or expected significant deterioration in the operating results of the debtor; ● An actual or expected significant adverse change in the regulatory, economic, or technological environment of the debtor that results in a significant decrease in the debtor’s ability to meet its debt obligations. Irrespective of the outcome of the above assessment, the Group presumes that the credit risk has increased significantly since initial recognition when contractual payments are more than 30 days past due, unless the Group has reasonable and supportable information that demonstrates otherwise. The Group regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant increase in credit risk before the amount becomes past due. (ii) Definition of default For internal credit risk management, the Group considers an event of default occurs when information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the Group, in full (without taking into account any collateral held by the Group). Irrespective of the above, the Group considers that default has occurred when a financial asset is more than 90 days past due unless the Group has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate. (iii) Credit-impaired financial assets A financial asset is credit-impaired when one or more events of default that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following events: (a) Significant financial difficulty of the issuer or the borrower; (b) A breach of contract, such as a default or past due event; (c) The lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession that the lender(s) would not otherwise consider. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued) 2.9 Financial assets (b) Impairment of financial assets (continued) (iii) Credit-impaired financial assets (continued) (d) It is becoming probable that the borrower will enter bankruptcy or other financial reorganization; or (e) The disappearance of an active market for that financial asset because of financial difficulties. (iv) Write-off policy The Group writes off a financial asset when there is information indicating that the counterparty is in severe financial difficulty and there is no realistic prospect of recovery, for example, when the counterparty has been placed under liquidation or has entered into bankruptcy proceedings, or in the case of trade receivables, when the amounts are over one year past due, whichever occurs sooner. Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account legal advice where appropriate. A write-off constitutes a derecognition event. Any subsequent recoveries are recognized in profit or loss. (v) Measurement and recognition of ECL The measurement of ECL is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default) and the exposure to default. The assessment of the probability of default and loss given default is based on historical data adjusted by forward-looking information. Estimation of ECL reflects an unbiased and probability-weighted amount that is determined with the respective risks of default representing the weights. Generally, the ECL is the difference between all contractual cash flows that are due to the Group in accordance with the contract and the cash flows that the Group expects to receive, discounted at the effective interest rate determined at initial recognition. Where ECL is measured on a collective basis or for cases where evidence at the individual instrument level may not yet be available, the financial instruments are grouped on the following basis: ● Nature of financial instruments; ● Past-due status; ● Nature, size and industry of debtors; and ● External credit ratings where available. The groups are regularly reviewed by management to ensure the constituents of each group continue to share similar credit risk characteristics. Interest income is calculated based on the gross carrying amount of the financial asset unless the financial asset is credit impaired, in which case interest income is calculated based on amortized cost of the financial asset. (c) Recognition and derecognition Regular way purchases and sales of financial assets are recognized on the trade date – the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. On disposal of a debt instrument, the difference between the carrying amount and the sale proceeds is recognized in profit or loss. Any amount previously recognized in other comprehensive income relating to that asset is reclassified to profit or loss. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued)
Financial Liabilities	2.10 Financial Liabilities Borrowings are presented as current liabilities unless the Group has an unconditional right to defer settlement for at least 12 months after the reporting date, in which case they are presented as non-current liabilities. Borrowings are initially recognized at fair values (net of transaction costs) and subsequently carried at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method. Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid. They are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). Otherwise, they are presented as non-current liabilities. Trade and other payables are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest method. (a) Derecognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss. (b) Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.	2.10 Financial Liabilities Borrowings are presented as current liabilities unless the Group has an unconditional right to defer settlement for at least 12 months after the reporting date, in which case they are presented as non-current liabilities. Borrowings are initially recognized at fair values (net of transaction costs) and subsequently carried at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method. Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid. They are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). Otherwise, they are presented as non-current liabilities. Trade and other payables are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest method. (a) Derecognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss. (b) Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.
Leases	2.11 Leases When the Group is the lessee At the inception of the contract, the Group assesses if the contract contains a lease. A contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Reassessment is only required when the terms and conditions of the contract are changed. Right-of-use assets The Group recognizes a right-of-use asset and lease liability at the date at which the underlying asset is available for use. Right-of-use assets are measured at cost which comprises the initial measurement of lease liabilities adjusted for any lease payments made at or before the commencement date and lease incentive received. Any initial direct costs that would not have been incurred if the lease had not been obtained are added to the carrying amount of the right-of-use assets. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. Right-of-use assets are presented within “Property, plant and equipment”. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued) 2.11 Leases (continued) Lease liabilities The initial measurement of a lease liability is measured at the present value of the lease payments discounted using the implicit rate in the lease, if the rate can be readily determined. If that rate cannot be readily determined, the Group shall use its incremental borrowing rate. Lease payments include the following: ● Fixed payments (including in-substance fixed payments), less any lease incentives receivable; ● Variable lease payment that is based on an index or rate, initially measured using the index or rate as at the commencement date; ● Amount expected to be payable under residual value guarantees; ● The exercise price of a purchase option if it is reasonably certain the option will be exercised; and ● Payment of penalties for terminating the lease, if the lease term reflects the Group exercising that option. For a contract that contains both lease and non-lease components, the Group allocates the consideration to each lease component on the basis of the relative stand-alone price of the lease and non-lease components. The Group has elected to not separate lease and non-lease components for property leases and accounts for these as one single lease component. Lease liability is measured at amortized cost using the effective interest method. Lease liability shall be remeasured when: ● There is a change in future lease payments arising from changes in an index or rate; ● There is a change in the Group’s assessment of whether it will exercise an extension option; or ● There is modification in the scope or the consideration of the lease that was not part of the original term. Lease liability is remeasured with a corresponding adjustment to the right-of-use assets, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Group presents lease liabilities as a separate line item on the statement of financial position. Short-term and low-value leases The Group has elected to not recognize right-of-use assets and lease liabilities for short-term leases that have lease terms of 12 months or less and leases of low value. Payments relating to these leases are expensed to profit or loss on a straight-line basis over the lease term. Variable lease payments Variable lease payments that are not based on an index or a rate are not included as part of the measurement and initial recognition of the lease liability. The Group shall recognize those lease payments in profit or loss in the periods that triggered those lease payments. Lease modifications The Group accounts for a lease modification as a separate lease if: ● The modification increases the scope of the lease by adding the right to use one or more underlying assets; and ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued) 2.11 Leases (continued) ● The consideration for the leases increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract. For a lease modification that is not accounted for as a separate lease, the Group remeasures the lease liability based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification. The Group accounts for the remeasurement of lease liabilities by making corresponding adjustments to the relevant right-of-use asset. When the modified contract contains a lease component and one or more additional lease or non-lease components, the Group allocates the consideration in the modified contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components. When the Group is the lessor Classification and measurement of leases Leases for which the Group is a lessor are classified as finance or operating leases. Whenever the terms of the lease transfer substantially all the risks and rewards incidental to ownership of an underlying asset to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. Amounts due from lessees under finance leases are recognized as receivables at commencement date at amounts equal to net investments in the leases, measured using the interest rate implicit in the respective leases. Initial direct costs are included in the initial measurement of the net investments in the leases. Interest income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Group’s net investment outstanding in respect of the leases. Rental income from operating leases is recognized in profit or loss on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset, and such costs are recognized as an expense on a straight-line basis over the lease term except for investment properties measured under the fair value model. Variable lease payments for operating leases that depend on an index or a rate are estimated and included in the total lease payments to be recognized on a straight-line basis over the lease term. Variable lease payments that do not depend on an index or a rate are recognized as income when they arise. Refundable rental deposits Refundable rental deposits received are accounted for under IFRS 9 and initially measured at fair value. Adjustments to fair value at initial recognition are considered as additional lease payments from lessees. Lease modification Changes in consideration of lease contracts that were not part of the original terms and conditions are accounted for as lease modifications, including lease incentives provided through forgiveness or reduction of rentals. The Group accounts for a modification to an operating lease as a new lease from the effective date of the modification, considering any prepaid or accrued lease payments relating to the original lease as part of the lease payments for the new lease. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued)	2.11 Leases When the Group is the lessee At the inception of the contract, the Group assesses if the contract contains a lease. A contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Reassessment is only required when the terms and conditions of the contract are changed. Right-of-use assets The Group recognizes a right-of-use asset and lease liability at the date at which the underlying asset is available for use. Right-of-use assets are measured at cost which comprises the initial measurement of lease liabilities adjusted for any lease payments made at or before the commencement date and lease incentive received. Any initial direct costs that would not have been incurred if the lease had not been obtained are added to the carrying amount of the right-of-use assets. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. Right-of-use assets are presented within “Property, plant and equipment”. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued) 2.11 Leases (continued) Lease liabilities The initial measurement of a lease liability is measured at the present value of the lease payments discounted using the implicit rate in the lease, if the rate can be readily determined. If that rate cannot be readily determined, the Group shall use its incremental borrowing rate. Lease payments include the following: ● Fixed payments (including in-substance fixed payments), less any lease incentives receivable; ● Variable lease payment that is based on an index or rate, initially measured using the index or rate as at the commencement date; ● Amount expected to be payable under residual value guarantees; ● The exercise price of a purchase option if it is reasonably certain the option will be exercised; and ● Payment of penalties for terminating the lease, if the lease term reflects the Group exercising that option. For a contract that contains both lease and non-lease components, the Group allocates the consideration to each lease component on the basis of the relative stand-alone price of the lease and non-lease components. The Group has elected to not separate lease and non-lease components for property leases and accounts for these as one single lease component. Lease liability is measured at amortized cost using the effective interest method. Lease liability shall be remeasured when: ● There is a change in future lease payments arising from changes in an index or rate; ● There is a change in the Group’s assessment of whether it will exercise an extension option; or ● There is modification in the scope or the consideration of the lease that was not part of the original term. Lease liability is remeasured with a corresponding adjustment to the right-of-use assets, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Group presents lease liabilities as a separate line item on the statement of financial position. Short-term and low-value leases The Group has elected to not recognize right-of-use assets and lease liabilities for short-term leases that have lease terms of 12 months or less and leases of low value. Payments relating to these leases are expensed to profit or loss on a straight-line basis over the lease term. Variable lease payments Variable lease payments that are not based on an index or a rate are not included as part of the measurement and initial recognition of the lease liability. The Group shall recognize those lease payments in profit or loss in the periods that triggered those lease payments. Lease modifications The Group accounts for a lease modification as a separate lease if: ● The modification increases the scope of the lease by adding the right to use one or more underlying assets; and ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued) 2.11 Leases (continued) ● The consideration for the leases increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract. For a lease modification that is not accounted for as a separate lease, the Group remeasures the lease liability based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification. The Group accounts for the remeasurement of lease liabilities by making corresponding adjustments to the relevant right-of-use asset. When the modified contract contains a lease component and one or more additional lease or non-lease components, the Group allocates the consideration in the modified contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components. When the Group is the lessor Classification and measurement of leases Leases for which the Group is a lessor are classified as finance or operating leases. Whenever the terms of the lease transfer substantially all the risks and rewards incidental to ownership of an underlying asset to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. Amounts due from lessees under finance leases are recognized as receivables at commencement date at amounts equal to net investments in the leases, measured using the interest rate implicit in the respective leases. Initial direct costs are included in the initial measurement of the net investments in the leases. Interest income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Group’s net investment outstanding in respect of the leases. Rental income from operating leases is recognized in profit or loss on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset, and such costs are recognized as an expense on a straight-line basis over the lease term except for investment properties measured under the fair value model. Variable lease payments for operating leases that depend on an index or a rate are estimated and included in the total lease payments to be recognized on a straight-line basis over the lease term. Variable lease payments that do not depend on an index or a rate are recognized as income when they arise. Refundable rental deposits Refundable rental deposits received are accounted for under IFRS 9 and initially measured at fair value. Adjustments to fair value at initial recognition are considered as additional lease payments from lessees. Lease modification Changes in consideration of lease contracts that were not part of the original terms and conditions are accounted for as lease modifications, including lease incentives provided through forgiveness or reduction of rentals. The Group accounts for a modification to an operating lease as a new lease from the effective date of the modification, considering any prepaid or accrued lease payments relating to the original lease as part of the lease payments for the new lease. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued)
Inventories	2.12 Inventories Inventories are stated at the lower of cost or net realizable value. Cost is calculated using the specific identification method and includes all costs of purchase and other costs incurred in bringing the inventories to their present location and condition. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale. When necessary, allowance is provided for damaged, obsolete and slow moving items to adjust the carrying values of inventories to the lower of cost and net realizable value.	2.12 Inventories Inventories are stated at the lower of cost or net realizable value. Cost is calculated using the specific identification method and includes all costs of purchase and other costs incurred in bringing the inventories to their present location and condition. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale. When necessary, allowance is provided for damaged, obsolete and slow moving items to adjust the carrying values of inventories to the lower of cost and net realizable value.
Income taxes	2.13 Income taxes Income tax represents the sum of current and deferred tax. Income tax relating to items recognized outside profit or loss is recognized outside profit or loss, either in other comprehensive income or directly in equity. Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period, taking into consideration interpretations and practices prevailing in the countries in which the Group operates. Deferred tax is provided, using the liability method, on all temporary differences at the end of the reporting period between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax liabilities are recognized for all taxable temporary differences, except:- ● When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit or loss nor taxable profit or loss; and ● In respect of taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognized for all deductible temporary differences, the carryforward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences, the carryforward of unused tax credits and unused tax losses can be utilized, except: ● When the deferred tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit or loss nor taxable profit or loss; and ● In respect of deductible temporary differences associated with investments in subsidiaries, associates and joint ventures, deferred tax assets are only recognized to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at the end of each reporting period and are recognized to the extent that it has become probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be recovered. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued) 2.13 Income Taxes Deferred tax is calculated, without discounting, at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. Current and deferred taxes are recognized as income or expenses in profit or loss, except to the extent that the tax arises from a transaction which is recognized directly in equity. The Group accounts for investment tax credits similar to accounting for other tax credits where a deferred tax asset is recognized for unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax credits can be utilized. Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount of the obligation can be estimated reliably. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.	2.13 Income taxes Income tax represents the sum of current and deferred tax. Income tax relating to items recognized outside profit or loss is recognized outside profit or loss, either in other comprehensive income or directly in equity. Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period, taking into consideration interpretations and practices prevailing in the countries in which the Group operates. Deferred tax is provided, using the liability method, on all temporary differences at the end of the reporting period between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax liabilities are recognized for all taxable temporary differences, except:- ● When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit or loss nor taxable profit or loss; and ● In respect of taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognized for all deductible temporary differences, the carryforward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences, the carryforward of unused tax credits and unused tax losses can be utilized, except: ● When the deferred tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit or loss nor taxable profit or loss; and ● In respect of deductible temporary differences associated with investments in subsidiaries, associates and joint ventures, deferred tax assets are only recognized to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at the end of each reporting period and are recognized to the extent that it has become probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be recovered. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued) 2.13 Income Taxes Deferred tax is calculated, without discounting, at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. Current and deferred taxes are recognized as income or expenses in profit or loss, except to the extent that the tax arises from a transaction which is recognized directly in equity. The Group accounts for investment tax credits similar to accounting for other tax credits where a deferred tax asset is recognized for unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax credits can be utilized. Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount of the obligation can be estimated reliably. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
Employee benefits	2.14 Employee benefits Employee benefits are recognized as an expense, unless the cost qualifies to be capitalized as an asset. (a) Defined contribution plans Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into separate entities such as the Central Provident Fund on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. (b) Short-term employees benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued)	2.14 Employee benefits Employee benefits are recognized as an expense, unless the cost qualifies to be capitalized as an asset. (a) Defined contribution plans Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into separate entities such as the Central Provident Fund on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. (b) Short-term employees benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued)
Currency translation	2.15 Currency translation The financial statements are presented in United States Dollar (“US$”), which is the functional currency of the Group. Transactions in a currency other than the United States Dollar (“foreign currency”) are translated into the United States Dollar using the exchange rates at the dates of the transactions. Currency exchange differences resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the closing rates at the reporting date are recognized in profit or loss. Non-monetary items measured at fair values in foreign currencies are translated using the exchange rates at the date when the fair values are determined. All foreign exchange gains and losses impacting profit or loss are presented in statement of comprehensive income within “Other operating expenses”.	2.15 Currency translation The financial statements are presented in United States Dollar (“US$”). Our business and operations are primarily conducted in Singapore through our subsidiary, ESA, that is domiciled there. The functional currency of ESA is US$ and transactions in a currency other than the United States Dollar (“foreign currency”) are translated into the United States Dollar using the exchange rates at the dates of the transactions. Currency exchange differences resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the closing rates at the reporting date are recognized in profit or loss. Non-monetary items measured at fair values in foreign currencies are translated using the exchange rates at the date when the fair values are determined. All foreign exchange gains and losses impacting profit or loss are presented in statement of comprehensive income within “Other operating expenses”.
Cash and cash equivalents	2.16 Cash and cash equivalents For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash on hand and deposits with financial institutions which are subject to any insignificant risk of changes in value, and have a short maturity of generally within three months when acquired.	2.16 Cash and cash equivalents For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash on hand and deposits with financial institutions which are subject to any insignificant risk of changes in value, and have a short maturity of generally within three months when acquired.
Share capital	2.17 Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares are deducted against the share capital account.	2.17 Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares are deducted against the share capital account.
Related parties	2.18 Related parties (a) A person, or a close member of that person’s family, is related to the Company if that person : (i) Has control or joint control over the Company; (ii) Has significant influence over the Company; or (iii) Is a member of key management personnel of the Company or the Company’s parent; or (b) An entity is related to the Company if any of the following conditions applies:- (i) The entity and the Company are members of the same group; (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member); (iii) The entity and the Company are joint ventures of the same third party; (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity; (v) The entity is a post-employment benefit plan for the benefit of employees of either the Company or an entity related to the Company; (vi) The entity is controlled or jointly controlled by a person identified in (a); (vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity); and (viii) The entity, or any member of a group of which it is a part, provides key management personnel services to the Company or to the Company’s parent. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued) 2.18 Related parties (continued) Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity and include: (a) That person’s children and spouse or domestic partner; (b) Children of that person’s spouse or domestic partner; and (c) Dependents of that person or that person’s spouse or domestic partner.	2.18 Related parties (a) A person, or a close member of that person’s family, is related to the Company if that person : (i) Has control or joint control over the Company; (ii) Has significant influence over the Company; or (iii) Is a member of key management personnel of the Company or the Company’s parent; or (b) An entity is related to the Company if any of the following conditions applies:- (i) The entity and the Company are members of the same group; (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member); (iii) The entity and the Company are joint ventures of the same third party; (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity; (v) The entity is a post-employment benefit plan for the benefit of employees of either the Company or an entity related to the Company; (vi) The entity is controlled or jointly controlled by a person identified in (a); (vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity); and (viii) The entity, or any member of a group of which it is a part, provides key management personnel services to the Company or to the Company’s parent. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued) 2.18 Related parties (continued) Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity and include: (a) That person’s children and spouse or domestic partner; (b) Children of that person’s spouse or domestic partner; and (c) Dependents of that person or that person’s spouse or domestic partner.
Fair value measurement	2.19 Fair value measurement The Group measures its properties at the end of each reporting period. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:- Level 1 – based on quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2 – based on valuation techniques for which the lowest level input that is significant to the fair value measurement is observable, either directly or indirectly Level 3 – based on valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable For assets and liabilities that are recognized in the consolidated financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 2. Significant accounting policies (continued)	2.19 Fair value measurement The Group measures its properties at the end of each reporting period. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:- Level 1 – based on quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2 – based on valuation techniques for which the lowest level input that is significant to the fair value measurement is observable, either directly or indirectly Level 3 – based on valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable For assets and liabilities that are recognized in the consolidated financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 2. Significant accounting policies (continued)
Application of amendments to IFRS	2.20 Application of amendments to IFRS In the preparation of the financial statements for the period ended June 30, 2024, the Group has applied the following amendments to IFRSs, for the first time, which are mandatorily effective for the annual periods beginning on or after January 1, 2024: Amendments to IFRS 16 Leases on sale and leaseback Amendments to IFRS 7 Supplier finance Amendments to IAS 1 Classification of liabilities as current or non-current Non-current liabilities with covenants The application of the amendments to IFRSs in the current year has had no material impact on the Group’s financial positions and performance for the current and prior years and/or on the disclosures set out in these financial statements.	2.20 Application of amendments to IFRS In the preparation of the financial statements for the year ended December 31, 2023, the Group has applied the following amendments to IFRSs, for the first time, which are mandatorily effective for the annual periods beginning on or after January 1, 2023: Amendments to IFRS 17 Insurance Contracts Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policies Amendments to IAS 8 Definition of Accounting Estimates Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction The application of the amendments to IFRSs in the current year has had no material impact on the Group’s financial positions and performance for the current and prior years and/or on the disclosures set out in these financial statements.

Basis of preparation (Tables)

Basis of preparation (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Basis Of Preparation
Schedule of property, plant and equipment depreciation, estimated useful lives	Depreciation is calculated using the straight-line method to allocate depreciable amounts over the estimated useful lives as follows: Schedule of property, plant and equipment depreciation, estimated useful lives Useful lives Leasehold land and buildings Over the lease term period ranging from 2 to 30 years Plant and equipment 3 5 Machineries 2 10 Renovation 5 Motor vehicles 10 Furniture and fittings 5	Depreciation is calculated using the straight-line method to allocate depreciable amounts over the estimated useful lives as follows: Schedule of property, plant and equipment depreciation, estimated useful lives Useful lives Leasehold land and buildings Over the lease term period ranging from 2 to 30 years Plant and equipment 3 5 Machineries 2 10 Renovation 5 Motor vehicles 10 Furniture and fittings 5
Schedule of intangible assets depreciable, estimated useful lives	Amortization is calculated using the straight-line method to allocate depreciable amounts over the estimated useful lives of the assets. The estimated useful lives are as follows: Schedule of intangible assets depreciable, estimated useful lives Useful lives Software 3	Amortization is calculated using the straight-line method to allocate depreciable amounts over the estimated useful lives of the assets. The estimated useful lives are as follows: Schedule of intangible assets depreciable, estimated useful lives Useful lives Software 3

Revenue (Tables)

Revenue (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Disclosure Of Revenue Abstract
Schedule of revenue classified by type of good or service	Revenue classified by type of good or service is as follows : Schedule of revenue classified by type of good or service 2024 2023 Unaudited For the Period Ended June 30, 2024 2023 US$ US$ Revenue from: - Sales of circular products 800,129 1,313,953 - Waste disposal services 2,687,750 2,080,360 Revenue 3,487,879 3,394,313	Revenue classified by type of good or service is as follows : Schedule of revenue classified by type of good or service 2023 2022 US$ US$ Revenue from: - Sales of circular products 2,305,646 2,746,097 - Waste disposal services 3,858,527 2,245,937 Revenue 6,164,173 4,992,034

Other income (Tables)

Other income (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Other Income
Schedule of other income	Schedule of other income 2024 2023 Unaudited For the Periods Ended June 30, 2024 2023 US$ US$ Foreign exchange gain 264,158 65,015 Interest income 3 12,002 Gain from disposal of motor vehicle - 2,130 Government grants 18,052 33,511 Grant from AEPW 1 - 40,320 Warehousing and logistic services - 36,357 Other Other income 282,213 189,335 1 The Alliance to End Plastic Waste (“AEPW”) is an industry-founded and funded non-governmental and non-profit organization based in Singapore. Founding members include BASF, Chevron Phillips Chemical, ExxonMobil, Dow Chemical, Mitsubishi Chemical Holdings, Proctor & Gamble and Shell	Schedule of other income 2023 2022 US$ US$ Interest income 18,308 4 Gain from disposal of motor vehicle - 26,586 Government grants 42,819 76,588 Grant from AEPW 1 72,000 116,000 Warehousing and logistic services 36,357 175,650 Others 335 1,545 Other income 169,819 396,373 1 The Alliance to End Plastic Waste (“AEPW”) is an industry-founded and funded non-governmental and non-profit organization based in Singapore. Founding members include BASF, Chevron Phillips Chemical, ExxonMobil, Dow Chemical, Mitsubishi Chemical Holdings, Proctor & Gamble and Shell

Other operating expenses (Table

Other operating expenses (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Other Operating Expenses
Schedule of other operating expenses	Schedule of other operating expenses Unaudited For the Periods Ended June 30, 2024 2023 US$ US$ Foreign exchange loss Foreign worker levy 82,944 78,335 Impairment loss on receivables Insurance 189,192 38,647 Professional fees 285,343 291,303 Property tax 54,293 54,630 Rental and storage 211,561 214,175 Utilities 36,889 92,045 Upkeep, repair and maintenance 58,165 53,392 Chemical and incineration fees 189,545 70,378 Bank service charges 3,528 45,878 Listing fees and expenses 75,641 - Others 25,172 52,743 Other operating expenses 1,212,273 991,526	Schedule of other operating expenses 2023 2022 US$ US$ Foreign exchange loss 189,426 22,287 Foreign worker levy 168,137 97,703 Impairment loss on receivables - 44,271 Insurance 55,694 43,589 Professional fees 109,703 93,978 Property tax 108,412 105,771 Rental and storage 594,748 290,481 Utilities 189,982 157,974 Upkeep, repair and maintenance 230,037 317,267 Chemical and incineration fees 396,428 229,204 Bank service charges 50,427 8,203 Others 9,398 117,099 Other operating expenses 2,102,392 1,527,827

Employee benefits expense (Tabl

Employee benefits expense (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Employee Benefits Expense
Schedule of employee benefits expense	Schedule of employee benefits expense 2024 2023 Unaudited For the Periods Ended June 30, 2024 2023 US$ US$ Salaries, wages and bonuses 524,521 472,611 Directors’ remuneration 373,093 110,651 Directors’ fees 64,002 - Employer’s contribution to defined contribution plans including Central Provident Fund 60,679 53,577 Other short term benefit 27,602 2,221 Employee benefits expense, gross - - Less: Amount capitalized as internal development of intangible assets - - Employee benefits expense 1,049,897 639,060	Schedule of employee benefits expense 2023 2022 US$ US$ Salaries, wages and bonuses 2,258,195 1,571,124 Directors’ remuneration 272,659 211,853 Directors’ fees 52,252 - Employer’s contribution to defined contribution plans including Central Provident Fund 142,749 107,263 Other short term benefit 26,943 54,077 Employee benefits expense, gross 2,752,798 1,944,317 Less: Amount capitalized as internal development of intangible assets (1,388,584 ) (1,011,193 ) Employee benefits expense 1,364,214 933,124

Finance expense (Tables)

Finance expense (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Finance Expense
Schedule of finance expense	Schedule of finance expense Unaudited For the Periods Ended June 30 2024 2023 US$ US$ Interest expenses: - Lease liabilities 26,129 28,492 - Borrowings 120,999 130,420 Interest expenses 147,128 158,912	Schedule of finance expense 2023 2022 US$ US$ Interest expenses: - Lease liabilities 55,934 28,559 - Borrowings 284,112 217,800 - Loans from Directors 48,671 - Interest expenses 388,717 246,359

Income tax expense (Tables)

Income tax expense (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Income Tax Expense
Schedule of tax expense attributable to loss	Schedule of tax expense attributable to loss Unaudited For the Periods Ended June 30 2024 2023 US$ US$ Tax expense attributable to loss is made up of: - Current income tax 146,480 - - Movements in deferred tax liabilities 2,000 39,000 Tax expense attributable to loss 148,480 39,000	Schedule of tax expense attributable to loss 2023 2022 US$ US$ Tax expense attributable to loss is made up of: - Movements in deferred tax liabilities 133,000 8000 Tax expense attributable to loss 133,000 8,000
Schedule of income tax rates to profit or loss before income tax expense	The tax on profit or loss before income tax differs from the theoretical amount that would arise using the Singapore standard rate of income tax expense as follows : Schedule of income tax rates to profit or loss before income tax expense Unaudited For the Periods Ended June 30, 2024 2023 US$ US$ Loss before income tax (322,944 ) (590,254 ) Tax calculated at tax rate of 17 17 (54,900 ) (100,343 ) Effects of: - Expenses not deductible for tax purposes 178,809 5,331 - Income not subject to tax (43,011 ) (21,754 ) - Listing expenses - - - Utilization of tax losses - - - Temporary difference 67,582 155,766 Income tax expense 148,480 39,000	Schedule of income tax rates to profit or loss before income tax expense 2023 2022 US$ US$ Loss before income tax (94,846,338 ) (2,383,812 ) Tax calculated at tax rate of 17 17 (16,123,877 ) (405,248 ) Tax calculated at tax rate (16,123,877 ) (405,248 ) Effects of: - Listing expenses 15,821,445 - - Expenses not deductible for tax purposes 467,334 172,993 - Income not subject to tax (3,112 ) (310 ) - Utilization of tax losses - (11,000 ) - Temporary difference (28,790 ) 251,565 Income tax expense 133,000 8,000

Property, plant and equipment (

Property, plant and equipment (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Disclosure of detailed information about property, plant and equipment [abstract]
Schedule of property, plant and equipment	Schedule of property, plant and equipment Leasehold land and buildings Plant and equipment Machineries Renovation Motor vehicles Furniture and fittings Total Unaudited Leasehold land and buildings Plant and equipment Machineries Renovation Motor vehicles Furniture and fittings Total US$ US$ US$ US$ US$ US$ US$ 2024 Beginning of financial period Cost - 4,960,307 1,213,687 490,239 694,591 131,973 7,490,797 Valuation 19,264,346 - - - - - 19,264,346 Beginning of financial period 19,264,346 4,960,307 1,213,687 490,239 694,591 131,973 26,755,143 Additions - 38,570 - - - 127 38,697 End of financial period 19,264,346 4,998,877 1,213,687 490,239 694,591 132,100 26,793,840 Accumulated depreciation Beginning of financial year 732,355 2,103,927 974,802 487,530 543,149 127,015 4,968,778 Depreciation charge 459,252 249,964 48,935 301 22,187 755 781,394 End of financial period 1,191,607 2,353,891 1,023,737 487,831 565,336 127,770 5,750,172 Net book value End of financial period 18,072,739 2,644,986 189,950 2,408 129,255 4,330 21,043,668 ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Periods ended June 30, 2024 and 2023 10. Property, plant and equipment (continued) Leasehold land and buildings Plant and equipment Machineries Renovation Motor vehicles Furniture and fittings Total US$ US$ US$ US$ US$ US$ US$ 2023 Beginning of financial year Cost - 4,385,903 1,213,687 487,229 692,142 127,487 6,906,448 Valuation 19,828,888 19,828,888 Beginning of financial year 19,828,888 4,385,903 1,213,687 487,229 692,142 127,487 26,735,336 Beginning balance 19,828,888 4,385,903 1,213,687 487,229 692,142 127,487 26,735,336 Additions - 580,125 - 3,010 63,423 4,486 651,044 Disposal - (5,721 ) - - (60,974 ) - (66,695 ) Lease modifications 8,230 - - - - - 8,230 Revaluation (910,055 ) - - - - - (910,055 ) Exchange difference 337,283 - - - - - 337,283 End of financial year 19,264,346 4,960,307 1,213,687 490,239 694,591 131,973 26,755,143 Ending balance 19,264,346 4,960,307 1,213,687 490,239 694,591 131,973 26,755,143 Accumulated depreciation Beginning of financial year 523,495 1,689,985 874,266 486,040 545,593 122,674 4,242,053 Beginning balance 523,495 1,689,985 874,266 486,040 545,593 122,674 4,242,053 Depreciation charge 932,231 416,516 100,536 1,490 46,695 4,341 1,501,809 Disposal - (2,574 ) - - (49,139 ) - (51,713 ) Revaluation (723,371 ) - - - - - (723,371 ) End of financial year 732,355 2,103,927 974,802 487,530 543,149 127,015 4,968,778 Ending balance 732,355 2,103,927 974,802 487,530 543,149 127,015 4,968,778 Net book value End of financial year 18,531,991 2,856,380 238,885 2,709 151,442 4,958 21,786,365 Ending balance 18,531,991 2,856,380 238,885 2,709 151,442 4,958 21,786,365	Schedule of property, plant and equipment Leasehold Plant and Machineries Renovation Motor Furniture Total US$ US$ US$ US$ US$ US$ US$ 2023 Cost Beginning of financial year 19,828,888 4,385,903 1,213,687 487,229 692,142 127,487 26,735,336 Additions - 580,125 - 3,010 63,423 4,486 651,044 Depreciation charge - Disposal - (5,721 ) - - (60,974 ) - (66,695 ) Lease modifications 8,230 - - - - - 8,230 Revaluation (910,055 ) - - - - - (910,055 ) Exchange difference 337,283 - - - - - 337,283 End of financial year 19,264,346 4,960,307 1,213,687 490,239 694,591 131,973 26,755,143 Accumulated depreciation Beginning of financial year 523,495 1,689,985 874,266 486,040 545,593 122,674 4,242,053 Depreciation charge 932,231 416,516 100,536 1,490 46,695 4,341 1,501,809 Disposal - (2,574 ) - - (49,139 ) - (51,713 ) Revaluation (723,371 ) - - - - - (723,371 ) End of financial year 732,355 2,103,927 974,802 487,530 543,149 127,015 4,968,778 Net book value End of financial year 18,531,991 2,856,380 238,885 2,709 151,442 4,958 21,786,365 ESGL Holdings Limited Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022 10. Property, plant and equipment, net (continued) Leasehold Plant and Machineries Renovation Motor Furniture Total US$ US$ US$ US$ US$ US$ US$ 2022 Cost Beginning of financial year 11,414,034 3,898,326 1,213,687 487,229 684,093 127,487 17,824,856 Additions - 487,577 - - 15,100 - 502,677 Disposal (7,051 ) (7,051 ) Lease modifications 1,296,818 - - - - 1,296,818 Revaluation 7,065,299 - 7,065,299 Exchange difference 52,737 - - - - - 52,737 End of financial year 19,828,888 4,385,903 1,213,687 487,229 692,142 127,487 26,735,336 Accumulated depreciation Beginning of financial year 348,207 1,315,480 772,407 478,565 506,219 115,387 3,536,265 Beginning Balance 348,207 1,315,480 772,407 478,565 506,219 115,387 3,536,265 Depreciation charge 1,126,858 374,505 101,859 7,475 43,419 7,287 1,661,403 Disposal - - - - (4,045 ) - (4,045 ) Revaluation (951,570 ) - - - - - (951,570 ) End of financial year 523,495 1,689,985 874,266 486,040 545,593 122,674 4,242,053 Ending Balance 523,495 1,689,985 874,266 486,040 545,593 122,674 4,242,053 Net book value End of financial year 19,305,393 2,695,918 339,421 1,189 146,549 4,813 22,493,283 Ending Balance 19,305,393 2,695,918 339,421 1,189 146,549 4,813 22,493,283
Schedule of fair value measurement hierarchy of leasehold land and buildings		Schedule of fair value measurement hierarchy of leasehold land and buildings December 31, 2023 (Level 1) (Level 2) (Level 3) Fair value measurements as at December 31, 2023 categorized into Quoted prices in Significant Significant active markets for other observable unobservable Fair value at identical assets inputs inputs December 31, 2023 (Level 1) (Level 2) (Level 3) US$ US$ US$ US$ Recurring fair value measurement Leasehold land and buildings: - Industrial – Singapore 16,532,686 - - 16,532,686 December 31, 2022 (Level 1) (Level 2) (Level 3) Fair value measurements as at December 31, 2022 categorized into Quoted prices in active markets for Significant Significant Fair value at identical assets observable inputs unobservable December 31, 2022 (Level 1) (Level 2) (Level 3) US$ US$ US$ US$ Recurring fair value measurement Leasehold land and buildings: - Industrial - Singapore 17,105,459 - - 17,105,459 Assets, at fair value 17,105,459 - - 17,105,459
Schedule of reconciliation of fair value measurements		Reconciliation of fair value measurements categorized within Level 3 of the fair value hierarchy:- Schedule of reconciliation of fair value measurements Leasehold land and buildings US$ Carrying amount at December 31, 2022 17,105,459 Depreciation charge on revaluation of properties held for own use (723,371 ) Net gain from a fair value adjustment recognized in the consolidated statement of profit or loss and other comprehensive income 150,598 Net gain from a fair value adjustment recognized in the consolidated statement of profit or loss and other comprehensive income 150,598 Carrying amount at December 31, 2023 16,532,686
Schedule of valuation techniques used and key inputs to valuation of leasehold land and buildings		Below is a summary of the valuation techniques used and the key inputs to the valuation of leasehold land and buildings:- Schedule of valuation techniques used and key inputs to valuation of leasehold land and buildings Valuation techniques Significant unobservable inputs Range or weighted average 2023 2022 Leasehold land and buildings in Singapore Market comparison approach Price per square foot US$ 113 US$ 396 per square foot US$ 67 141

Intangible assets (Tables)

Intangible assets (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Disclosure of detailed information about intangible assets [abstract]
Schedule of intangible assets	Schedule of intangible assets Unaudited June 30, 2024 December 31, 2023 US$ US$ Cost Beginning of financial year 4,349,839 2,961,256 Additions - internal development 653,849 1,388,583 End of financial period and year 5,003,688 4,349,839 Accumulated amortisation Beginning of financial year 1,968,374 1,115,344 Amortization 559,340 853,030 End of financial period and year 2,527,714 1,968,374 Net book value End of financial period and year 2,475,974 2,381,465	Schedule of intangible assets 2023 2022 US$ US$ Cost Beginning of financial year 2,961,256 1,950,063 Additions - internal development 1,388,583 1,011,193 Amortization End of financial year 4,349,839 2,961,256 Accumulated amortisation Beginning of financial year 1,115,344 476,495 Beginning Balance 1,115,344 476,495 Amortization 853,030 638,849 End of financial year 1,968,374 1,115,344 Ending Balance 1,968,374 1,115,344 Net book value End of financial year 2,381,465 1,845,912

Trade and other receivables (Ta

Trade and other receivables (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Trade And Other Receivables
Schedule of trade and other receivables	Schedule of trade and other receivables Unaudited June 30, 2024 December 31, 2023 US$ US$ Trade receivables - Non-related parties 454,398 461,497 Trade receivables 454,398 461,497 Non-trade receivables - Advance payment to suppliers 329,597 329,597 - Amount due from a director - - - Deposits 169,737 46,035 - Goods and services tax recoverable - 184 - Prepayments 32,219 195,209 Non-trade receivables 531,553 571,025 Trade and other receivables 985,951 1,032,522	Schedule of trade and other receivables 2023 2022 US$ US$ Trade receivables - Non-related parties 461,497 389,648 Trade receivables 461,497 389,648 Non-trade receivables - Advance payment to suppliers 329,597 337,488 - Deposits 46,035 59,857 - Goods and services tax recoverable 184 2,294 - Prepayments 195,209 25,841 Non-trade receivables 571,025 425,480 Trade and other receivables 1,032,522 815,128
Schedule of components of trade receivables aging	Schedule of components of trade receivables aging Unaudited June 30, 2024 December 31, 2023 US$ US$ Less than 30 days 32,438 44,543 30 to 90 days 93,230 15,214 Trade and other receivables 125,668 59,757	Schedule of components of trade receivables aging 2023 2022 US$ US$ Less than 30 days 44,543 22,473 30 to 90 days 15,214 1,895 More than 90 days - 2,117 Trade and other receivables 59,757 26,485

Inventories (Tables)

Inventories (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Notes and other explanatory information [abstract]
Schedule of inventories	Schedule of inventories Unaudited June 30, 2024 December 31, 2023 US$ US$ Raw materials 78,682 64,184 Finished goods - - Inventories 78,682 64,184	Schedule of inventories 2023 2022 US$ US$ Raw materials 64,184 116,721 Finished goods - 104,430 Inventories 64,184 221,151

Leases _ The Group as a lessee

Leases – The Group as a lessee (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Notes and other explanatory information [abstract]
Schedule of ROU assets classified within property, plant and equipment	ROU assets classified within property, plant and equipment Schedule of ROU assets classified within property, plant and equipment Unaudited June 30, 2024 December 31, 2023 US$ US$ Carrying amounts Leasehold land and buildings 1,894,746 1,999,304 Plant and equipment - 270 Motor vehicles 110,162 130,642 Carrying amounts ROU assets 2,004,908 2,130,216	ROU assets classified within property, plant and equipment Schedule of ROU assets classified within property, plant and equipment 2023 2022 US$ US$ Carrying amounts Leasehold land and buildings 1,999,304 2,199,934 Plant and equipment 270 8,151 Motor vehicles 130,642 113,707 Carrying amounts ROU assets 2,130,216 2,321,792
Schedule of depreciation charge	(b) Depreciation charge during the financial year Schedule of depreciation charge Unaudited Periods ended June 30, 2024 2023 US$ US$ Leasehold land and buildings 104,559 104,302 Plant and equipment 270 3,941 Motor vehicles 20,479 20,001 Depreciation charge 125,308 128,244	(b) Depreciation charge during the financial year Schedule of depreciation charge 2023 2022 US$ US$ Leasehold land and buildings 208,860 175,287 Plant and equipment 7,882 7,882 Motor vehicles 40,480 35,217 Depreciation charge 257,222 218,386
Schedule of interest expense	Interest expense Schedule of interest expense Unaudited Periods ended June 30 2024 2023 US$ US$ Interest expense on lease liabilities 26,129 28,492	Interest expense Schedule of interest expense 2023 2022 US$ US$ Interest expense on lease liabilities 55,934 28,559
Schedule of short-term leases		(c) Short-term leases Schedule of short-term leases 2023 2022 US$ US$ Expense relating to short-term leases 372,721 157,687 Total cash outflow for leases 614,191 372,642
Schedule of lease liabilities		(e) Lease liabilities Schedule of lease liabilities 2022 2022 (US$) (US$) Current 192,282 185,764 Non-current 1,974,524 2,071,571 Lease liabilities 2,166,806 2,257,335

Trade and other payables (Table

Trade and other payables (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Notes and other explanatory information [abstract]
Schedule of trade and other payables	Schedule of trade and other payables Unaudited June 30, 2024 December 31, 2023 US$ US$ Trade payables - Non-related parties 331,541 528,865 Trade payables 331,541 528,865 Other payables - Amount due to shareholders 331,248 189,595 - Contract liabilities 1,133,784 2,077,358 - Amount due to directors 1,127,472 910,541 - Deposit from customers - - - Accruals and other payables 2,543,992 2,837,205 - Goods and services tax payable 22,596 6,340 - Withholding tax 12,845 10,655 Other payables 5,171,937 6,031,694 Trade and other payables 5,503,478 6,560,559	Schedule of trade and other payables 2023 2022 US$ US$ Trade payables - Non-related parties 528,865 525,588 Trade payables 528,865 525,588 Other payables - Amount due to shareholder 189,595 - - Contract liabilities 2,077,358 2,162,274 - Amount due to directors 910,541 927,885 - Deposit from customers - 19,411 - Accruals for operating expenses 2,837,205 645,861 - Goods and services tax payable 6,340 50 - Withholding tax 10,655 4,276 Other payables 6,031,694 3,759,757 Trade and other payables 6,560,559 4,285,345

Borrowings (Tables)

Borrowings (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Notes and other explanatory information [abstract]
Schedule of borrowings term loan	Schedule of borrowings term loan Unaudited June 30, 2024 December 31, 2023 US$ US$ Term loan I (i) 157,980 201,945 Term loan IV (iii) 238,778 378,323 Term loan V (iv) 276,040 426,589 Term loan VI (v) 713,103 924,276 Term loan VII (vi) 1,765,182 2,014,258 Trade receivables financing 71,074 81,231 Revolving credit 1,450,129 1,751,857 Total borrowings 4,672,286 5,778,479 (i) Term loan I was obtained for refinancing the outstanding loan amount in relation to the leasehold land and building of the Group. This loan is repayable by monthly instalments over a 120 2.30 1.30 4.68 5.68 (ii) Term loan II was obtained to finance the construction of the proposed erection of a single user 1-story factory with part 3-story ancillary. This loan is repayable by monthly instalments over a 7 2.65 3.45 3 (iii) Term loan IV was obtained for working capital purposes. This loan is repayable by monthly instalments over a 5 2.00 (iv) Term loan V was obtained for working capital purposes. This loan is repayable by monthly instalments over a 5 2 It contains a repayment on demand clause and therefore it is classified as current liabilities as at June 30, 2024 and December 31, 2023. (v) Term loan VI was obtained for purchasing of machineries for core business operations. This loan is repayable by monthly instalments over a 5 2.50 It contains a repayment on demand clause and therefore it is classified as current liabilities as at June 30, 2024 and December 31, 2023. (vi) Term loan VII was obtained as a replacement for Term Loan II and also for working capital purposes. This loan is repayable by monthly instalments over a 3 2.0 It contains a repayment on demand clause and therefore it is classified as current liabilities as at June 30, 2024 and December 31, 2023. (vii) Revolving credit is obtained for working capital purposes. These loans are repayable 1 6 2.00 2.00	Schedule of borrowings term loan 2023 2022 US$ US$ Term loan I (i) 201,945 271,035 Term loan II (ii) - 1,266,912 Term loan IV (iii) 378,323 626,714 Term loan V (iv) 426,589 697,233 Term loan VI (v) 924,276 1,278,261 Term loan VII (vi) 2,014,258 - Trade receivables financing 81,231 - Revolving credit 1,751,857 1,658,486 Total borrowings 5,778,479 5,798,641 2023 2022 US$ US$ Analysed as : Non-current portion 112,319 371,103 Current portion 5,666,160 5,427,538 Total borrowings 5,778,479 5,798,641
Schedule of respect of the interest-bearing borrowings trade and other payables	Details of the repayment schedule in respect of the interest-bearing borrowings are as follows : Schedule of respect of the interest-bearing borrowings trade and other payables Unaudited June 30, 2024 December 31, 2023 US$ US$ Bank borrowings repayable : Within one year or on demand 4,672,286 5,666,160 Within a period of more than one year but not exceeding two years - 112,319 Total Bank borrowings repayable 4,672,286 5,778,479	Schedule of respect of the interest-bearing borrowings trade and other payables 2023 2022 US$ US$ Bank borrowings repayable : Within one year or on demand 5,666,160 5,427,538 Within a period of more than one year but not exceeding two years 112,319 371,103 Total Bank borrowings repayable 5,778,479 5,798,641

Deferred tax (Tables)

Deferred tax (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Notes and other explanatory information [abstract]
Schedule of deferred tax assets and liabilities	Schedule of deferred tax assets and liabilities Unaudited June 30, 2024 December 31, 2023 US$ US$ Deferred tax assets recognized - - Deferred tax liabilities recognized 298,000 296,000 Net deferred tax liabilities 298,000 296,000	Schedule of deferred tax assets and liabilities 2023 2022 US$ US$ Deferred tax assets recognized - 75,070 Deferred tax liabilities recognized 296,000 238,070 Net deferred tax liabilities 296,000 163,000
Schedule of deferred tax liabilities	The movement in deferred tax liabilities (prior to offsetting of balances) during the financial year is as follows: Schedule of deferred tax liabilities Unaudited June 30, 2024 December 31, 2023 US$ US$ Balance as at beginning of financial year 296,000 163,000 Movements in deferred tax liabilities 2,000 133,000 Balance as at end of financial year 298,000 296,000	The movement in deferred tax liabilities (prior to offsetting of balances) during the financial year is as follows: Schedule of deferred tax liabilities 2023 2022 US$ US$ Balance as at beginning of financial year 163,000 155,000 Movements in deferred tax liabilities 133,000 8,000 Balance as at end of financial year 296,000 163,000

Share capital (Tables)

Share capital (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Notes and other explanatory information [abstract]
Schedule of share capital	Schedule of share capital June 30, 2024 December 31, 2023 No. of ordinary shares 22,683,039 12,683,039	Schedule of share capital 2023 2022 No. of ordinary shares 12,683,039 10,000

Group information (Tables)

Group information (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Schedule of consolidated financial statements	The consolidated financial statements of the Group include : Schedule of consolidated financial statements Place of incorporation Effective equity held by the Name of subsidiary Principal activities and business Group 2024 2023 % % Held by the Company Environmental Solutions Group Holdings Limited Investment holding company Cayman Island 100 100 Held by Subsidiary Environmental Solutions Asia Holdings Limited Investment holding company British Virgin Islands 100 100 Environmental Solutions (Asia) Pte Ltd Waste management and recycling of industrial wastes Singapore 100 100	The consolidated financial statements of the Group include : Schedule of consolidated financial statements Name of subsidiary Principal activities Place of incorporation and business Effective equity held by the Group 2023 2022 % % Held by the Company Environmental Solutions Group Holdings Limited Investment holding company Cayman Island 100 100 Held by Subsidiary Environmental Solutions Asia Holdings Limited Investment holding company British Virgin Islands 100 100 Environmental Solutions (Asia) Pte Ltd Waste management and recycling of industrial wastes Singapore 100 100

Related party transactions (Tab

Related party transactions (Tables)	12 Months Ended
	Dec. 31, 2023
Notes and other explanatory information [abstract]
Schedule of related party transactions	(a) Directors’ remuneration Schedule of related party transactions 2023 2022 US$ US$ Salaries and bonuses 255,471 195,654 Directors’ fees 52,252 - Personal guarantee fee - 152,689 Employer’s contribution to the Central Provident Fund 17,188 16,199 Total Directors remuneration 324,911 364,542 (b) Key management personnel compensation 2023 2022 US$ US$ Salaries and bonuses 229,840 92,451 Employer’s contribution to the Central Provident Fund 22,826 8,806 Total key management personnel compensation 252,666 101,257

Capital commitments (Tables)

Capital commitments (Tables)	12 Months Ended
	Dec. 31, 2023
Notes and other explanatory information [abstract]
Schedule of capital expenditures	Capital expenditures contracted for at the end of the reporting period but not recognized in the financial statements are as follows: Schedule of capital expenditures 2023 2022 US$ US$ Property, plant and equipment 1,328,306 1,339,532

Financial risk management (Tabl

Financial risk management (Tables)	12 Months Ended
	Dec. 31, 2023
Notes and other explanatory information [abstract]
Schedule of currency exposure	The Group’s currency exposure based on the information provided to key management is as follows: Schedule of currency exposure SGD USD Total US$ US$ US$ December 31, 2023 Financial assets Cash and cash equivalents 248,391 118,370 366,761 Trade and other receivables 1,001,109 31,413 1,032,522 Prepaid forward purchase agreement - 969 969 Financial assets 1,249,500 150,752 1,400,252 Financial liabilities Trade and other payables 5,189,728 1,370,831 6,560,559 Borrowings 5,778,479 - 5,778,479 Deferred underwriting fee payable - 2,753,125 2,753,125 Lease liabilities 2,166,806 - 2,166,806 Financial liabilities 13,135,013 4,123,956 17,258,969 Net financial liabilities (11,885,513 ) (3,973,204 ) (15,858,717 ) Currency exposure of financial liabilities, net of those denominated in the Company’s functional currency (11,885,513 ) (3,973,204 ) (15,858,717 ) Net financial (liabilities)/assets ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022 23. Financial risk management (continued) (a) Market risk (continued) (i) Currency risk SGD USD Total US$ US$ US$ December 31, 2022 Financial assets Cash and cash equivalents 118,411 133,985 252,396 Trade and other receivables 747,634 67,494 815,128 Financial assets 866,045 201,479 1,067,524 Financial liabilities Trade and other payables 3,972,893 312,452 4,285,345 Borrowings 5,798,641 - 5,798,641 Lease liabilities 2,257,335 - 2,257,335 Financial liabilities 12,028,869 312,452 12,341,321 Net financial (liabilities)/assets (11,162,824 ) (110,973 ) (11,273,797 )
Schedule of tax rate effect	If the USD changes against the SGD by 10 10 Schedule of tax rate effect 2023 2022 Increase/(decrease) in profit or loss before tax 2023 2022 US$ US$ SGD against USD - strengthened (1,188,551 ) (1,116,282 ) - weakened 1,188,551 1,116,282 Total Currency risk 1,188,551 1,116,282
Schedule of group’s exposure to credit risk and ECLs for trade receivables	The following table provides information about the Group’s exposure to credit risk and ECLs for trade receivables: Schedule of group’s exposure to credit risk and ECLs for trade receivables 2023 Gross Expected carrying Loss loss amount allowance rate US$ US$ Current (not past due) 0 % 406,305 - Less than 3 months past due 5 % 59,333 3,218 3 months to 6 months past due 0 % - - More than 6 months past due 100 % 43,550 43,550 509,188 46,768 ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022 23. Financial risk management (continued) (b) Credit risk (ii) Impairment of trade receivables (continued) 2022 Expected Gross loss carrying Loss rate amount allowance US$ US$ Current (not past due) 0 % 363,164 - Less than 3 months past due 66 % 71,136 46,768 3 months to 6 months past due 0 % 2,116 - More than 6 months past due 0 % - - 436,416 46,768
Schedule of movements in loss allowance for trade receivables	The movements in loss allowance for trade receivables during the years are as follows:- Schedule of movements in loss allowance for trade receivables 2023 2022 US$ US$ At January 1 46,768 150,000 Impairment losses recognized (Note 3) - 46,768 Amount written off as uncollectible - 150,000 At December 31 46,768 46,768
Schedule of liquidity risk	The table below analyses non-derivative financial liabilities of the Group based on the remaining period from December 31, 2022 to the contractual maturity date. The amounts disclosed in the table below are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying amounts as the impact of discounting is not significant. Schedule of liquidity risk Less than Between 2 and 5 years US$ More than At December 31,2023 Trade and other payables 6,540,559 - - Deferred underwriting fee payable 2,753,125 - - Borrowings 5,953,741 112,880 - Lease liabilities 192,282 256,215 1,718,309 Financial liabilities 15,439,707 369,095 1,718,309 At December 31,2022 Trade and other payables 4,285,345 - - Borrowings 5,579,034 376,708 - Lease liabilities 185,764 329,200 1,742,371 10,050,143 705,908 1,742,371
Schedule of financial instruments	The carrying amounts of the different categories of financial instruments are as follows: Schedule of financial instruments 2023 2022 US$ US$ Financial assets, at amortised cost 874,477 480,318 Financial liabilities, at amortised cost 15,150,956 9,529,631

Listing expenses (Tables)

Listing expenses (Tables)	12 Months Ended
	Dec. 31, 2023
Listing Expenses
Schedule of listing expenses	Listing expenses were non-recurring expenses incurred in connection with the Business Combination and are as follows: Schedule of listing expenses 2023 2022 US$ US$ Share issued as consideration 67,641,500 - Net assets of SPAC (590,526 ) - Revaluation of FPA 24,241,261 - Professional fees 1,680,198 981,701 Printing, courier, and others 94,891 - Listing expenses 93,067,324 981,701 Total Quantity Price Amount Issuance of shares 6,764,150 10.00 67,641,500

Loss per share (Tables)

Loss per share (Tables)	12 Months Ended
	Dec. 31, 2023
Notes and other explanatory information [abstract]
Schedule of loss per share	Schedule of loss per share 2023 2022 US$ US$ Calculation of basic earnings per share: Net loss (94,979,338 ) (2,391,812 ) Loss attributable to ordinary shareholders (94,979,338 ) (2,391,812 ) Weighted average number of ordinary shares 6,466,527 6,378,267 Basic and diluted loss per share (14.69 ) (0.37 )

Schedule of property, plant and

Schedule of property, plant and equipment depreciation, estimated useful lives (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Land and buildings [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, estimated useful lives description	Over the lease term period ranging from 2 to 30 years	Over the lease term period ranging from 2 to 30 years
Property and equipment [member] | Bottom of range [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, estimated useful lives	3 years	3 years
Property and equipment [member] | Top of range [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, estimated useful lives	5 years	5 years
Machinery [member] | Bottom of range [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, estimated useful lives	2 years	2 years
Machinery [member] | Top of range [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, estimated useful lives	10 years	10 years
Renovation [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, estimated useful lives	5 years	5 years
Motor vehicles [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, estimated useful lives	10 years	10 years
Fixtures and fittings [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, estimated useful lives	5 years	5 years

Schedule of intangible assets d

Schedule of intangible assets depreciable, estimated useful lives (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Computer software [member]
IfrsStatementLineItems [Line Items]
Intangible assets, estimated useful lives	3 years	3 years

Critical accounting estimates_2

Critical accounting estimates, assumptions and judgements (Details Narrative) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Dec. 04, 2023	Aug. 14, 2023	Aug. 04, 2023	Jul. 27, 2023	Jun. 30, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Property, plant and equipment	$ 21,043,668	$ 21,786,365					$ 21,786,365	$ 22,493,283
Inventories	78,682	64,184					64,184	221,151
Trade receivables	454,398	461,497					461,497	389,648
Intangible assets, net	$ 2,475,974	$ 2,381,465					$ 2,381,465	$ 1,845,912
Number of shares issued	22,683,039	12,683,039						10,000
Prepaid Forward Purchase Agreement		$ 969
Forward purchase agreement [member]
IfrsStatementLineItems [Line Items]
Ownership interest percentage						50%
Forward purchase agreement [member] | Vellar Opportunities Fund Master, Ltd [member]
IfrsStatementLineItems [Line Items]
Number of shares issued				1,268,085		931,915
Forward purchase agreement [member] | Vellar Opportunities Fund Master, Ltd [member] | Class A Common Stock [member]
IfrsStatementLineItems [Line Items]
Number of shares issued						4,400,000
Forward purchase agreement [member] | ACM ARRT K LLC [member]
IfrsStatementLineItems [Line Items]
Number of shares issued			1,050,000		550,000	550,000
Forward purchase agreement [member] | ACM ARRT K LLC [member] | Class A Common Stock [member]
IfrsStatementLineItems [Line Items]
Number of shares issued						500,000

Schedule of revenue classified

Schedule of revenue classified by type of good or service (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Revenue	$ 3,487,879	$ 3,394,313	$ 6,164,173	$ 4,992,034
Sales of circular products [member]
IfrsStatementLineItems [Line Items]
Revenue	800,129	1,313,953	2,305,646	2,746,097
Waste disposal services [member]
IfrsStatementLineItems [Line Items]
Revenue	$ 2,687,750	$ 2,080,360	$ 3,858,527	$ 2,245,937

Schedule of other income (Detai

Schedule of other income (Details) - USD ($)	6 Months Ended				12 Months Ended
	Jun. 30, 2024		Jun. 30, 2023		Dec. 31, 2023	Dec. 31, 2022
Other Income
Foreign exchange gain	$ 264,158		$ 65,015
Interest income	3		12,002		$ 18,308	$ 4
Gain from disposal of motor vehicle			2,130			26,586
Government grants	18,052		33,511		42,819	76,588
Grant from AEPW1		[1]	40,320	[1]	72,000	116,000
Warehousing and logistic services			36,357		36,357	175,650
Others					335	1,545
Other income	$ 282,213		$ 189,335		$ 169,819	$ 396,373
[1]The Alliance to End Plastic Waste (“AEPW”) is an industry-founded and funded non-governmental and non-profit organization based in Singapore. Founding members include BASF, Chevron Phillips Chemical, ExxonMobil, Dow Chemical, Mitsubishi Chemical Holdings, Proctor & Gamble and Shell

Schedule of other operating exp

Schedule of other operating expenses (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Other Operating Expenses
Foreign exchange loss			$ 189,426	$ 22,287
Foreign worker levy	$ 82,944	$ 78,335	168,137	97,703
Impairment loss on receivables				44,271
Insurance	189,192	38,647	55,694	43,589
Professional fees	285,343	291,303	109,703	93,978
Property tax	54,293	54,630	108,412	105,771
Rental and storage	211,561	214,175	594,748	290,481
Utilities	36,889	92,045	189,982	157,974
Upkeep, repair and maintenance	58,165	53,392	230,037	317,267
Chemical and incineration fees	189,545	70,378	396,428	229,204
Bank service charges	3,528	45,878	50,427	8,203
Listing fees and expenses	75,641
Others	25,172	52,743	9,398	117,099
Other operating expenses	$ (1,212,273)	$ (991,526)	$ (2,102,392)	$ (1,527,827)

Schedule of employee benefits e

Schedule of employee benefits expense (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Employee Benefits Expense
Salaries, wages and bonuses	$ 524,521	$ 472,611	$ 2,258,195	$ 1,571,124
Directors’ remuneration	373,093	110,651	272,659	211,853
Directors’ fees	64,002		52,252
Employer’s contribution to defined contribution plans including Central Provident Fund	60,679	53,577	142,749	107,263
Other short term benefit	27,602	2,221	26,943	54,077
Employee benefits expense, gross			2,752,798	1,944,317
Less: Amount capitalized as internal development of intangible assets			(1,388,584)	(1,011,193)
Employee benefits expense	$ 1,049,897	$ 639,060	$ 1,364,214	$ 933,124

Schedule of finance expense (De

Schedule of finance expense (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Interest expenses	$ 147,128	$ 158,912	$ 388,717	$ 246,359
Lease liabilities [member]
IfrsStatementLineItems [Line Items]
Interest expenses	26,129	28,492	55,934	28,559
Short-term borrowings [member]
IfrsStatementLineItems [Line Items]
Interest expenses	$ 120,999	$ 130,420	284,112	217,800
Loans from directors [member]
IfrsStatementLineItems [Line Items]
Interest expenses			$ 48,671

Schedule of tax expense attribu

Schedule of tax expense attributable to loss (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Income Tax Expense
- Current income tax	$ 146,480
- Movements in deferred tax liabilities	2,000	39,000	$ 133,000	$ 8,000
Tax expense attributable to loss	$ 148,480	$ 39,000	$ 133,000	$ 8,000

Schedule of income tax rates to

Schedule of income tax rates to profit or loss before income tax expense (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Income Tax Expense
Loss before income tax	$ (322,944)	$ (590,254)	$ (94,846,338)	$ (2,383,812)
Tax calculated at tax rate	(54,900)	(100,343)	(16,123,877)	(405,248)
Effects of:
- Expenses not deductible for tax purposes	178,809	5,331	467,334	172,993
- Income not subject to tax	(43,011)	(21,754)	(3,112)	(310)
- Listing expenses			15,821,445
- Utilization of tax losses				(11,000)
- Temporary difference	67,582	155,766	(28,790)	251,565
Tax expense attributable to loss	$ 148,480	$ 39,000	$ 133,000	$ 8,000

Schedule of Income Tax Rates _2

Schedule of Income Tax Rates to Profit or Loss Before Income Tax Expense (Details) (Paranthetical)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Income Tax Expense
Applicable tax rate	17%	17%	17%	17%

Schedule of property, plant a_2

Schedule of property, plant and equipment (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Cost	$ 7,490,797	$ 6,906,448
Beginning Balance	21,786,365	22,493,283	$ 22,493,283
Ending Balance	21,043,668	21,786,365	21,786,365	$ 22,493,283
Gross carrying amount [member]
IfrsStatementLineItems [Line Items]
Valuation	19,264,346	19,828,888
Beginning Balance	26,755,143	26,735,336	26,735,336	17,824,856
Additions	38,697	651,044	651,044	502,677
Ending Balance	26,793,840	26,755,143	26,755,143	26,735,336
Disposal		(66,695)	(66,695)	(7,051)
Lease modifications		8,230	8,230	1,296,818
Revaluation		(910,055)	(910,055)	7,065,299
Exchange difference		337,283	337,283	52,737
Accumulated depreciation [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	4,968,778	4,242,053	4,242,053	3,536,265
Ending Balance	5,750,172		4,968,778	4,242,053
Depreciation charge	781,394	1,501,809	1,501,809	1,661,403
Disposal		(51,713)	(51,713)	(4,045)
Revaluation		(723,371)	(723,371)	(951,570)
Leasehold land and buildings [member]
IfrsStatementLineItems [Line Items]
Cost
Beginning Balance	18,531,991	19,305,393	19,305,393
Ending Balance	18,072,739		18,531,991	19,305,393
Leasehold land and buildings [member] | Gross carrying amount [member]
IfrsStatementLineItems [Line Items]
Valuation	19,264,346	19,828,888
Beginning Balance	19,264,346	19,828,888	19,828,888	11,414,034
Additions
Ending Balance	19,264,346	19,264,346	19,264,346	19,828,888
Depreciation charge
Disposal
Lease modifications		8,230	8,230	1,296,818
Revaluation		(910,055)	(910,055)	7,065,299
Exchange difference		337,283	337,283	52,737
Leasehold land and buildings [member] | Accumulated depreciation [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	732,355	523,495	523,495	348,207
Ending Balance	1,191,607		732,355	523,495
Depreciation charge	459,252	932,231	932,231	1,126,858
Disposal
Revaluation		(723,371)	(723,371)	(951,570)
Property and equipment [member]
IfrsStatementLineItems [Line Items]
Cost	4,960,307	4,385,903
Beginning Balance	2,856,380	2,695,918	2,695,918
Ending Balance	2,644,986		2,856,380	2,695,918
Property and equipment [member] | Gross carrying amount [member]
IfrsStatementLineItems [Line Items]
Valuation
Beginning Balance	4,960,307	4,385,903	4,385,903	3,898,326
Additions	38,570	580,125	580,125	487,577
Ending Balance	4,998,877	4,960,307	4,960,307	4,385,903
Disposal		(5,721)	(5,721)
Lease modifications
Revaluation
Exchange difference
Property and equipment [member] | Accumulated depreciation [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	2,103,927	1,689,985	1,689,985	1,315,480
Ending Balance	2,353,891		2,103,927	1,689,985
Depreciation charge	249,964	416,516	416,516	374,505
Disposal		(2,574)	(2,574)
Revaluation
Machinery [member]
IfrsStatementLineItems [Line Items]
Cost	1,213,687	1,213,687
Beginning Balance	238,885	339,421	339,421
Ending Balance	189,950		238,885	339,421
Machinery [member] | Gross carrying amount [member]
IfrsStatementLineItems [Line Items]
Valuation
Beginning Balance	1,213,687	1,213,687	1,213,687	1,213,687
Additions
Ending Balance	1,213,687	1,213,687	1,213,687	1,213,687
Disposal
Lease modifications
Revaluation
Exchange difference
Machinery [member] | Accumulated depreciation [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	974,802	874,266	874,266	772,407
Ending Balance	1,023,737		974,802	874,266
Depreciation charge	48,935	100,536	100,536	101,859
Disposal
Revaluation
Renovation [member]
IfrsStatementLineItems [Line Items]
Cost	490,239	487,229
Beginning Balance	2,709	1,189	1,189
Ending Balance	2,408		2,709	1,189
Renovation [member] | Gross carrying amount [member]
IfrsStatementLineItems [Line Items]
Valuation
Beginning Balance	490,239	487,229	487,229	487,229
Additions		3,010	3,010
Ending Balance	490,239	490,239	490,239	487,229
Disposal
Lease modifications
Revaluation
Exchange difference
Renovation [member] | Accumulated depreciation [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	487,530	486,040	486,040	478,565
Ending Balance	487,831		487,530	486,040
Depreciation charge	301	1,490	1,490	7,475
Disposal
Revaluation
Motor vehicles [member]
IfrsStatementLineItems [Line Items]
Cost	694,591	692,142
Beginning Balance	151,442	146,549	146,549
Ending Balance	129,255		151,442	146,549
Motor vehicles [member] | Gross carrying amount [member]
IfrsStatementLineItems [Line Items]
Valuation
Beginning Balance	694,591	692,142	692,142	684,093
Additions		63,423	63,423	15,100
Ending Balance	694,591	694,591	694,591	692,142
Disposal		(60,974)	(60,974)	(7,051)
Lease modifications
Revaluation
Exchange difference
Motor vehicles [member] | Accumulated depreciation [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	543,149	545,593	545,593	506,219
Ending Balance	565,336		543,149	545,593
Depreciation charge	22,187	46,695	46,695	43,419
Disposal		(49,139)	(49,139)	(4,045)
Revaluation
Fixtures and fittings [member]
IfrsStatementLineItems [Line Items]
Cost	131,973	127,487
Beginning Balance	4,958	4,813	4,813
Ending Balance	4,330		4,958	4,813
Fixtures and fittings [member] | Gross carrying amount [member]
IfrsStatementLineItems [Line Items]
Valuation
Beginning Balance	131,973	127,487	127,487	127,487
Additions	127	4,486	4,486
Ending Balance	132,100	131,973	131,973	127,487
Disposal
Lease modifications
Revaluation
Exchange difference
Fixtures and fittings [member] | Accumulated depreciation [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	127,015	122,674	122,674	115,387
Ending Balance	127,770		127,015	122,674
Depreciation charge	$ 755	4,341	4,341	7,287
Disposal
Revaluation

Schedule of intangible assets (

Schedule of intangible assets (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Beginning Balance	$ 2,381,465	$ 1,845,912	$ 1,845,912
End of financial year	2,475,974	2,381,465	2,381,465	$ 1,845,912
Amortization	559,340	426,515	853,030	638,849
Gross carrying amount [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	4,349,839	2,961,256	2,961,256	1,950,063
Additions - internal development	653,849		1,388,583	1,011,193
End of financial year	5,003,688		4,349,839	2,961,256
Accumulated Amortisation [Member]
IfrsStatementLineItems [Line Items]
Beginning Balance	1,968,374	$ 1,115,344	1,115,344	476,495
End of financial year	2,527,714		1,968,374	1,115,344
Amortization	$ 559,340		$ 853,030	$ 638,849

Schedule of trade and other rec

Schedule of trade and other receivables (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Trade And Other Receivables
- Non-related parties	$ 454,398	$ 461,497		$ 389,648
Trade receivables	454,398	461,497	$ 461,497	389,648
- Advance payment to suppliers	329,597	329,597		337,488
- Amount due from a director
- Deposits	169,737	46,035		59,857
- Goods and services tax recoverable		184		2,294
- Prepayments	32,219	195,209		25,841
Non-trade receivables	531,553	571,025		425,480
Trade and other receivables	$ 985,951	$ 1,032,522		$ 815,128

Schedule of components of trade

Schedule of components of trade receivables aging (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Trade and other receivables	$ 985,951	$ 1,032,522	$ 815,128
Less than one month [member]
IfrsStatementLineItems [Line Items]
Trade and other receivables	32,438	44,543	22,473
Later than two months and not later than three months [member]
IfrsStatementLineItems [Line Items]
Trade and other receivables	93,230	15,214	1,895
Current [member]
IfrsStatementLineItems [Line Items]
Trade and other receivables	$ 125,668	59,757	26,485
Later than three months [member]
IfrsStatementLineItems [Line Items]
Trade and other receivables			$ 2,117

Trade and other receivables (De

Trade and other receivables (Details Narrative) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Trade and other receivables	$ 985,951	$ 1,032,522	$ 815,128
Allowance for expected credit loss		47,691	46,768
Current [member]
IfrsStatementLineItems [Line Items]
Trade and other receivables	$ 125,668	$ 59,757	$ 26,485

Schedule of inventories (Detail

Schedule of inventories (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Notes and other explanatory information [abstract]
Raw materials	$ 78,682	$ 64,184		$ 116,721
Finished goods				104,430
Inventories	$ 78,682	$ 64,184	$ 64,184	$ 221,151

Schedule of ROU assets classifi

Schedule of ROU assets classified within property, plant and equipment (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Carrying amounts ROU assets	$ 2,004,908	$ 2,130,216	$ 2,321,792
Land and buildings [member]
IfrsStatementLineItems [Line Items]
Carrying amounts ROU assets	1,894,746	1,999,304	2,199,934
Plant and equipment [member]
IfrsStatementLineItems [Line Items]
Carrying amounts ROU assets		270	8,151
Motor vehicles [member]
IfrsStatementLineItems [Line Items]
Carrying amounts ROU assets	$ 110,162	$ 130,642	$ 113,707

Schedule of depreciation charge

Schedule of depreciation charge (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Depreciation charge	$ 125,308	$ 128,244	$ 257,222	$ 218,386
Land and buildings [member]
IfrsStatementLineItems [Line Items]
Depreciation charge	104,559	104,302	208,860	175,287
Plant and equipment [member]
IfrsStatementLineItems [Line Items]
Depreciation charge	270	3,941	7,882	7,882
Motor vehicles [member]
IfrsStatementLineItems [Line Items]
Depreciation charge	$ 20,479	$ 20,001	$ 40,480	$ 35,217

Schedule of interest expense (D

Schedule of interest expense (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Notes and other explanatory information [abstract]
Interest expense on lease liabilities	$ 26,129	$ 28,492	$ 55,934	$ 28,559

Schedule of trade and other pay

Schedule of trade and other payables (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Notes and other explanatory information [abstract]
- Non-related parties	$ 331,541	$ 528,865	$ 525,588
Trade payables	331,541	528,865	525,588
- Amount due to shareholder	331,248	189,595
- Contract liabilities	1,133,784	2,077,358	2,162,274
- Amount due to directors	1,127,472	910,541	927,885
- Deposit from customers			19,411
- Accruals for operating expenses	2,543,992	2,837,205	645,861
- Goods and services tax payable	22,596	6,340	50
- Withholding tax	12,845	10,655	4,276
Other payables	5,171,937	6,031,694	3,759,757
Trade and other payables	$ 5,503,478	$ 6,560,559	$ 4,285,345

Schedule of borrowings term loa

Schedule of borrowings term loan (Details) - USD ($)		Jun. 30, 2024		Dec. 31, 2023		Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Total borrowings		$ 4,672,286		$ 5,778,479		$ 5,798,641
Non-current portion				112,319		371,103
Current portion		4,672,286		5,666,160		5,427,538
Term Loan I [member]
IfrsStatementLineItems [Line Items]
Total borrowings		157,980	[1]	201,945	[1],[2]	271,035	[2]
Term Loan IV [member]
IfrsStatementLineItems [Line Items]
Total borrowings		238,778	[3]	378,323	[3],[4]	626,714	[4]
Term Loan V [member]
IfrsStatementLineItems [Line Items]
Total borrowings		276,040	[5]	426,589	[5],[6]	697,233	[6]
Term Loan VI [member]
IfrsStatementLineItems [Line Items]
Total borrowings		713,103	[7]	924,276	[7],[8]	1,278,261	[8]
Term Loan VII [member]
IfrsStatementLineItems [Line Items]
Total borrowings		1,765,182	[9]	2,014,258	[9],[10]		[10]
Trade receivables financing [member]
IfrsStatementLineItems [Line Items]
Total borrowings		71,074		81,231
Revolving credit [member]
IfrsStatementLineItems [Line Items]
Total borrowings		$ 1,450,129		1,751,857		1,658,486
Term Loan II [member]
IfrsStatementLineItems [Line Items]
Total borrowings	[11]					$ 1,266,912
[1]Term loan I was obtained for refinancing the outstanding loan amount in relation to the leasehold land and building of the Group. This loan is repayable by monthly instalments over a 120 2.30 1.30 4.68 5.68 120 2.30 1.30 4.68 5.68 5 2.00 5 2.00 5 2 It contains a repayment on demand clause and therefore it is classified as current liabilities as at June 30, 2024 and December 31, 2023. 5 2 5 2.50 It contains a repayment on demand clause and therefore it is classified as current liabilities as at June 30, 2024 and December 31, 2023. 5 2.50 3 2.0 It contains a repayment on demand clause and therefore it is classified as current liabilities as at June 30, 2024 and December 31, 2023. 3 2.0 7 2.65 3.45 3

Schedule of respect of the inte

Schedule of respect of the interest-bearing borrowings trade and other payables (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Total Bank borrowings repayable	$ 4,672,286	$ 5,778,479	$ 5,798,641
On demand [member]
IfrsStatementLineItems [Line Items]
Total Bank borrowings repayable	4,672,286	5,666,160	5,427,538
Later than one year and not later than two years [member]
IfrsStatementLineItems [Line Items]
Total Bank borrowings repayable		$ 112,319	$ 371,103

Schedule of borrowings term l_2

Schedule of borrowings term loan (Details) (Parenthetical)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
IfrsStatementLineItems [Line Items]
Interest rate		6%
Term Loan I [member]
IfrsStatementLineItems [Line Items]
Monthly instalments	120 months	120 months
Term Loan I [member] | Bottom of range [member]
IfrsStatementLineItems [Line Items]
Interest rate	2.30%	2.30%
Commercial rate interest	4.68%	4.68%
Term Loan I [member] | Top of range [member]
IfrsStatementLineItems [Line Items]
Interest rate	1.30%	1.30%
Commercial rate interest	5.68%	5.68%
Term Loan II [member]
IfrsStatementLineItems [Line Items]
Monthly instalments	7 years	7 years
Financing interest rate	3%	3%
Term Loan II [member] | Bottom of range [member]
IfrsStatementLineItems [Line Items]
Interest rate	2.65%	2.65%
Term Loan II [member] | Top of range [member]
IfrsStatementLineItems [Line Items]
Interest rate	3.45%	3.45%
Term Loan IV [member]
IfrsStatementLineItems [Line Items]
Monthly instalments	5 years	5 years
Interest rate	2%	2%
Term Loan V [member]
IfrsStatementLineItems [Line Items]
Monthly instalments	5 years	5 years
Interest rate	2%	2%
Term Loan VI [member]
IfrsStatementLineItems [Line Items]
Monthly instalments	5 years	5 years
Interest rate	2.50%	2.50%
Term Loan VII [member]
IfrsStatementLineItems [Line Items]
Monthly instalments	3 years	3 years
Interest rate	2%	2%
Revolving credit [member]
IfrsStatementLineItems [Line Items]
Interest rate	2%	2%
Interest rate	2%	2%
Revolving credit [member] | Bottom of range [member]
IfrsStatementLineItems [Line Items]
Fixed interest rate	1 month	1 month
Revolving credit [member] | Top of range [member]
IfrsStatementLineItems [Line Items]
Fixed interest rate	6 months	6 months

Schedule of deferred tax assets

Schedule of deferred tax assets and liabilities (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Notes and other explanatory information [abstract]
Deferred tax assets recognized			$ 75,070
Deferred tax liabilities recognized	298,000	296,000	238,070
Net deferred tax liabilities	$ 298,000	$ 296,000	$ 163,000

Schedule of deferred tax liabil

Schedule of deferred tax liabilities (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Notes and other explanatory information [abstract]
Balance as at beginning of financial year	$ 296,000	$ 163,000	$ 155,000
Movements in deferred tax liabilities	2,000	133,000	8,000
Balance as at end of financial year	$ 298,000	$ 296,000	$ 163,000

Schedule of share capital (Deta

Schedule of share capital (Details) - shares	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Notes and other explanatory information [abstract]
No. of ordinary shares	22,683,039	12,683,039	10,000

Borrowings (Details Narrative)

Borrowings (Details Narrative) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Notes and other explanatory information [abstract]
Immediate payment percentage	90%	90%
Settlement payment percentage	10%	10%
Leasehold land and buildings	$ 16,177,993	$ 16,532,686	$ 17,105,459

Schedule of consolidated financ

Schedule of consolidated financial statements (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Parent [member]
IfrsStatementLineItems [Line Items]
Place of incorporation and business	Cayman Island
Effective equity held by the Group	100%	100%
Total for all subsidiaries [member]
IfrsStatementLineItems [Line Items]
Place of incorporation and business	British Virgin Islands
Effective equity held by the Group	100%	100%
Environmental Solutions Pte Ltd [member]
IfrsStatementLineItems [Line Items]
Place of incorporation and business	Singapore
Effective equity held by the Group	100%	100%

Schedule of fair value measurem

Schedule of fair value measurement hierarchy of leasehold land and buildings (Details) - Leasehold land and buildings [member] - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Level 3 of fair value hierarchy [member]
IfrsStatementLineItems [Line Items]
Assets, at fair value	$ 16,532,686	$ 17,105,459
Recurring fair value measurement [member] | Industrial [member] | SINGAPORE
IfrsStatementLineItems [Line Items]
Assets, at fair value	16,532,686	17,105,459
Recurring fair value measurement [member] | Industrial [member] | SINGAPORE | Level 1 of fair value hierarchy [member]
IfrsStatementLineItems [Line Items]
Assets, at fair value
Recurring fair value measurement [member] | Industrial [member] | SINGAPORE | Level 2 of fair value hierarchy [member]
IfrsStatementLineItems [Line Items]
Assets, at fair value
Recurring fair value measurement [member] | Industrial [member] | SINGAPORE | Level 3 of fair value hierarchy [member]
IfrsStatementLineItems [Line Items]
Assets, at fair value	$ 16,532,686	$ 17,105,459

Schedule of reconciliation of f

Schedule of reconciliation of fair value measurements (Details) - Level 3 of fair value hierarchy [member] - Leasehold land and buildings [member]	12 Months Ended
	Dec. 31, 2023 USD ($)
IfrsStatementLineItems [Line Items]
Carrying amount at December 31, 2022	$ 17,105,459
Depreciation charge on revaluation of properties held for own use	(723,371)
Net gain from a fair value adjustment recognized in the consolidated statement of profit or loss and other comprehensive income	150,598
Carrying amount at December 31, 2023	$ 16,532,686

Schedule of valuation technique

Schedule of valuation techniques used and key inputs to valuation of leasehold land and buildings (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Jun. 30, 2024	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Leasehold land and buildings per square foot	$ 16,532,686	$ 16,177,993	$ 17,105,459
SINGAPORE
IfrsStatementLineItems [Line Items]
Valuation techniques	Market comparison approach
Significant unobservable inputs	Price per square foot
SINGAPORE | Bottom of range [member]
IfrsStatementLineItems [Line Items]
Leasehold land and buildings per square foot	$ 113		67
SINGAPORE | Top of range [member]
IfrsStatementLineItems [Line Items]
Leasehold land and buildings per square foot	$ 396		$ 141

Schedule of short-term leases (

Schedule of short-term leases (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
General Information And Reorganization Transactions
Expense relating to short-term leases	$ 372,721	$ 157,687
Total cash outflow for leases	$ 614,191	$ 372,642

Schedule of lease liabilities (

Schedule of lease liabilities (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
General Information And Reorganization Transactions
Current	$ 149,516	$ 192,282	$ 185,764
Non-current	$ 1,852,343	1,974,524	2,071,571
Lease liabilities		$ 2,166,806	$ 2,257,335

General information and reorg_2

General information and reorganization transactions (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2024	Dec. 04, 2023	Aug. 14, 2023	Aug. 04, 2023	Jul. 27, 2023
IfrsStatementLineItems [Line Items]
Net current liabilities	$ 13,800,000	$ 8,600,000
Current assets	1,464,436	1,288,678	$ 1,321,134
Current liabilities	15,228,666	9,898,647	12,681,425
Working capital	5,700,000
Proceeds from issuance of private placement	2,500,000
Leasehold land and buildings	16,532,686	17,105,459	$ 16,177,993
Cost of inventories recognized as an expense	$ 977,619	1,093,194
Description of cross-reference to disclosures about leases	Lease contracts are entered into for fixed term of 1 month to 30 years.
Unsecured, bear interests	6%
Amount due to directors	$ 48,671	8,893
Contract liabilities	85,536	544,311
Tax losses		$ 442,000
Number of shares issued	12,683,039	10,000	22,683,039
Deemed price	$ 10
Business combination merger agreement [member]
IfrsStatementLineItems [Line Items]
Number of shares issued	6,764,150
Deemed price	$ 10
Payments to shareholders	$ 4,100,804
Forward purchase agreement [member] | Vellar Opportunities Fund Master, Ltd [member]
IfrsStatementLineItems [Line Items]
Number of shares issued					1,268,085		931,915
Number of additional shares issued							1,268,085
Forward purchase agreement [member] | ACM ARRT K LLC [member]
IfrsStatementLineItems [Line Items]
Number of shares issued				1,050,000		550,000	550,000
Gross carrying amount [member]
IfrsStatementLineItems [Line Items]
Leasehold land and buildings	$ 3,645,289	$ 4,118,381

Schedule of related party trans

Schedule of related party transactions (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Total Directors remuneration	$ 324,911	$ 364,542
Total key management personnel compensation	252,666	101,257
Salaries and bonuses [member]
IfrsStatementLineItems [Line Items]
Total Directors remuneration	255,471	195,654
Total key management personnel compensation	229,840	92,451
Directors fees [member]
IfrsStatementLineItems [Line Items]
Total Directors remuneration	52,252
Personal guarantee fee [member]
IfrsStatementLineItems [Line Items]
Total Directors remuneration		152,689
Employer contribution to the central provident fund [member]
IfrsStatementLineItems [Line Items]
Total Directors remuneration	17,188	16,199
Total key management personnel compensation	$ 22,826	$ 8,806

Schedule of capital expenditure

Schedule of capital expenditures (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Property, plant and equipment	$ 21,043,668	$ 21,786,365	$ 21,786,365	$ 22,493,283
Capitalised development expenditure [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment		$ 1,328,306		$ 1,339,532

Schedule of currency exposure (

Schedule of currency exposure (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Oil and Gas, Proved Reserve, Quantity [Line Items]
Cash and cash equivalents	$ 256,501	$ 366,761	$ 1,157,621	$ 252,399	$ 137,014
Trade and other receivables	985,951	1,032,522		815,128
Prepaid forward purchase agreement		969
Financial assets		1,400,252		1,067,524
Trade and other payables	5,503,478	6,560,559		4,285,345
Borrowings	4,672,286	5,778,479		5,798,641
Deferred underwriting fee payable	$ 2,153,125	2,753,125
Lease liabilities		2,166,806		2,257,335
Financial liabilities		17,258,969		12,341,321
Net financial liabilities		(15,858,717)
Currency exposure of financial liabilities, net of those denominated in the Company’s functional currency		(15,858,717)
Net financial (liabilities)/assets				(11,273,797)
Cash and cash equivalents				252,396
SINGAPORE
Oil and Gas, Proved Reserve, Quantity [Line Items]
Cash and cash equivalents		248,391
Trade and other receivables		1,001,109		747,634
Prepaid forward purchase agreement
Financial assets		1,249,500		866,045
Trade and other payables		5,189,728		3,972,893
Borrowings		5,778,479		5,798,641
Deferred underwriting fee payable
Lease liabilities		2,166,806		2,257,335
Financial liabilities		13,135,013		12,028,869
Net financial liabilities		(11,885,513)
Currency exposure of financial liabilities, net of those denominated in the Company’s functional currency		(11,885,513)
Net financial (liabilities)/assets				(11,162,824)
Cash and cash equivalents				118,411
UNITED STATES
Oil and Gas, Proved Reserve, Quantity [Line Items]
Cash and cash equivalents		118,370
Trade and other receivables		31,413		67,494
Prepaid forward purchase agreement		969
Financial assets		150,752		201,479
Trade and other payables		1,370,831		312,452
Borrowings
Deferred underwriting fee payable		2,753,125
Lease liabilities
Financial liabilities		4,123,956		312,452
Net financial liabilities		(3,973,204)
Currency exposure of financial liabilities, net of those denominated in the Company’s functional currency		$ (3,973,204)
Net financial (liabilities)/assets				(110,973)
Cash and cash equivalents				$ 133,985

Schedule of tax rate effect (De

Schedule of tax rate effect (Details) - Currency risk [member] - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Strengthened [member]
IfrsStatementLineItems [Line Items]
Total Currency risk	$ (1,188,551)	$ (1,116,282)
Weekened [member]
IfrsStatementLineItems [Line Items]
Total Currency risk	$ 1,188,551	$ 1,116,282

Schedule of group_s exposure to

Schedule of group’s exposure to credit risk and ECLs for trade receivables (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Gross carrying amount	$ 509,188	$ 436,416
Loss allowance	$ 46,768	$ 46,768
Current [member]
IfrsStatementLineItems [Line Items]
Expected loss rate	0%	0%
Gross carrying amount	$ 406,305	$ 363,164
Loss allowance
Later than one month and not later than three months [member]
IfrsStatementLineItems [Line Items]
Expected loss rate	5%	66%
Gross carrying amount	$ 59,333	$ 71,136
Loss allowance	$ 3,218	$ 46,768
Later than three months and not later than six months [member]
IfrsStatementLineItems [Line Items]
Expected loss rate	0%	0%
Gross carrying amount		$ 2,116
Loss allowance
Later than six months [member]
IfrsStatementLineItems [Line Items]
Expected loss rate	100%	0%
Gross carrying amount	$ 43,550
Loss allowance	$ 43,550

Schedule of movements in loss a

Schedule of movements in loss allowance for trade receivables (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Impairment losses recognized (Note 3)	$ 46,768	$ 46,768
Trade receivables [member]
IfrsStatementLineItems [Line Items]
Beginning	46,768	150,000
Impairment losses recognized (Note 3)		46,768
Amount written off as uncollectible		150,000
Ending	$ 46,768	$ 46,768

Schedule of liquidity risk (Det

Schedule of liquidity risk (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Trade and other payables	$ 5,503,478	$ 6,560,559	$ 4,285,345
Deferred underwriting fee payable	$ 2,153,125	2,753,125
Lease liabilities		2,166,806	2,257,335
Financial liabilities		17,258,969	12,341,321
Not later than one year [member]
IfrsStatementLineItems [Line Items]
Trade and other payables		6,540,559	4,285,345
Deferred underwriting fee payable		2,753,125
Borrowings		5,953,741	5,579,034
Lease liabilities		192,282	185,764
Financial liabilities		15,439,707	10,050,143
Later than one year and not later than five years [member]
IfrsStatementLineItems [Line Items]
Trade and other payables
Deferred underwriting fee payable
Borrowings		112,880	376,708
Lease liabilities		256,215	329,200
Financial liabilities		369,095	705,908
Later than five years [member]
IfrsStatementLineItems [Line Items]
Trade and other payables
Deferred underwriting fee payable
Borrowings
Lease liabilities		1,718,309	1,742,371
Financial liabilities		$ 1,718,309	$ 1,742,371

Schedule of financial instrumen

Schedule of financial instruments (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Notes and other explanatory information [abstract]
Financial assets, at amortised cost	$ 874,477	$ 480,318
Financial liabilities, at amortised cost	$ 15,150,956	$ 9,529,631

Financial risk management (Deta

Financial risk management (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Tax rate effect	10%	10%
Borrowings interest rate	0.50%	0.50%
Loss after tax	$ 18,831	$ 18,554
Trade receivables percentage	58.80%	48%
Share price	$ 11.50
Exercise price of warrants	$ 0.01
Trading days disclosure	the last sales price of ESGL ordinary shares equals or exceeds $18.00 per share for any 20 trading days within a 30 trading day period ending three business days before ESGL sends the notice of redemption
Warrants [member]
IfrsStatementLineItems [Line Items]
Exercise price of warrants	$ 0.0038
Warrants outstanding	34,200
Public warrants [member]
IfrsStatementLineItems [Line Items]
Ordinary shares	8,625,000
Private warrants [member]
IfrsStatementLineItems [Line Items]
Ordinary shares	377,331

Forward Purchase Agreements (_2

Forward Purchase Agreements (“FPA”) (Details Narrative) - USD ($)	Mar. 21, 2024	Aug. 04, 2023	Jul. 27, 2023	Jun. 30, 2024	Dec. 31, 2023	Dec. 04, 2023	Sep. 20, 2023	Sep. 15, 2023	Aug. 14, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Number of shares issued				22,683,039	12,683,039					10,000
Value of shares issued				$ 11,892	$ 10,892					$ 10,000
Forward purchase agreement [member] | Vellar Opportunities Fund Master, Ltd [member]
IfrsStatementLineItems [Line Items]
Percentage of rights and obligations			50%
Number of shares issued			931,915						1,268,085
Description of settlement amount adjustment		The Settlement Amount Adjustment is equal to the product of (1) (a) the Maximum Number of Shares less (b) any Terminated Shares as of the Valuation Date, multiplied by (2) $2.00.
Additional funds requested to seller								$ 1,000,000
Additional funds received from seller							$ 1,000,000
Forward purchase agreement [member] | Vellar Opportunities Fund Master, Ltd [member] | Top of range [member]
IfrsStatementLineItems [Line Items]
Number of shares issued			2,200,000
Additional funds requested to seller			$ 1,000,000
Forward purchase agreement [member] | Vellar Opportunities Fund Master, Ltd [member] | Class A Common Stock [member]
IfrsStatementLineItems [Line Items]
Number of shares issued			4,400,000
Prepayment amounts			$ 10,141,403.28
Forward purchase agreement [member] | Vellar Opportunities Fund Master, Ltd [member] | Class A Common Stock [member] | Top of range [member]
IfrsStatementLineItems [Line Items]
Number of shares issued			2,200,000
Forward purchase agreement [member] | ACM ARRT K LLC [member]
IfrsStatementLineItems [Line Items]
Number of shares issued		550,000	550,000			1,050,000
Value of shares issued						$ 0
Forward purchase agreement [member] | ACM ARRT K LLC [member] | Top of range [member]
IfrsStatementLineItems [Line Items]
Number of shares issued			2,200,000
Additional funds requested to seller			$ 1,000,000
Forward purchase agreement [member] | ACM ARRT K LLC [member] | Class A Common Stock [member]
IfrsStatementLineItems [Line Items]
Number of shares issued			500,000
Prepayment amounts			$ 5,427,750
Forward purchase agreement [member] | Sellers [member] | Top of range [member]
IfrsStatementLineItems [Line Items]
Additional funds requested to seller			$ 2,000,000
Valuation period agreement [member] | Vellar Opportunities Fund Master, Ltd [member] | Major ordinary share transactions [member]
IfrsStatementLineItems [Line Items]
Number of shares issued	52,641
Number of shares recycled	2,200,000
Number of shares adjustment	2,147,359
Weighted average share price	$ 2
Settlement adjustment amount	$ 4,400,000
Valuation period agreement [member] | Vellar Opportunities Fund Master, Ltd [member] | Weighted average [member] | Major ordinary share transactions [member]
IfrsStatementLineItems [Line Items]
Weighted average share price	$ 0.45

Schedule of listing expenses (D

Schedule of listing expenses (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Listing Expenses
Share issued as consideration	$ 67,641,500
Net assets of SPAC	(590,526)
Revaluation of FPA	24,241,261
Professional fees	1,680,198	981,701
Printing, courier, and others	94,891
Listing expenses	$ 93,067,324	$ 981,701
Number of shares issued, Quantity	6,764,150
Issuance of shares, Price	$ 10

Schedule of loss per share (Det

Schedule of loss per share (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Notes and other explanatory information [abstract]
Net loss	$ (471,424)	$ (629,254)	$ (94,979,338)	$ (2,391,812)
Loss attributable to ordinary shareholders			$ (94,979,338)	$ (2,391,812)
Weighted average number of ordinary shares	14,000,514	6,378,267	6,466,527	6,378,267
Loss per share - Basic	$ (0.03)	$ (0.10)	$ (14.69)	$ (0.37)
Loss per share - Diluted	$ (0.03)	$ (0.10)	$ (14.69)	$ (0.37)

Subsequent events (Details Narr

Subsequent events (Details Narrative) - USD ($)	Apr. 03, 2024	Mar. 21, 2024	Jun. 30, 2024	Mar. 28, 2024	Mar. 27, 2024	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Number of shares issued			22,683,039			12,683,039	10,000
Purchase price per share						$ 10
Valuation period agreement [member] | Vellar Opportunities Fund Master, Ltd [member] | Major ordinary share transactions [member]
IfrsStatementLineItems [Line Items]
Number of shares issued		52,641
Number of shares recycled		2,200,000
Number of shares adjustment		2,147,359
Weighted average share price		$ 2
Settlement adjustment amount		$ 4,400,000
Valuation period agreement [member] | Vellar Opportunities Fund Master, Ltd [member] | Major ordinary share transactions [member] | Weighted average [member]
IfrsStatementLineItems [Line Items]
Weighted average share price		$ 0.45
Share purchase agreement [member] | Accredited investor [member] | Major ordinary share transactions [member]
IfrsStatementLineItems [Line Items]
Number of shares issued	8,000,000			2,000,000
Purchase price per share					$ 0.25
Gross proceeds issuance of ordinary shares	$ 2,500,000
Share purchase agreement [member] | Accredited investor [member] | Major ordinary share transactions [member] | Top of range [member]
IfrsStatementLineItems [Line Items]
Number of shares issued					10,000,000

Comparative information (Detail

Comparative information (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Professional fees	$ 1,680,198	$ 981,701