0001493152-24-020109 | 20-F | XBRL Viewer

Other operating expenses (Tables)

12 Months Ended

Dec. 31, 2023

	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

Capital commitments (Tables)

12 Months Ended

Dec. 31, 2023

Capital Commitments

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

New or revised IFRSs not yet adopted

12 Months Ended

Dec. 31, 2023

New Or Revised Ifrss Not Yet Adopted

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

Share capital (Tables)

12 Months Ended

Dec. 31, 2023

Share Capital

Schedule of share capital

	2023		2022

No. of ordinary shares		12,683,039		10,000

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% of its rights and obligations under the Forward Purchase Agreement to ACM ARRT K LLC (“ARRT”, together with Vellar, the “Sellers”). Following the assignment and novation, the rights and obligations of each Seller under its Forward Purchase Agreement were and are separate and distinct from the those of the other Seller, with each Seller acting independently of the other, without reference to or knowledge of the other Seller’s actions or inactions. 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 shares (the “Maximum Number of Shares”) of Company Class A common stock, or 4,400,000 in total. The Sellers made their purchases after the expiration of the redemption deadline for holders to redeem shares in connection with the Business Combination, in brokered transactions in the open market, typically from holders that had elected to redeem their shares. In aggregate, Vellar purchased 931,915 shares, and ARRT 500,000 shares of the Company’s Class A common stock (the “Recycled Shares”). In connection with these purchases, the Sellers revoked any redemption elections. 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 was paid to Vellar and $5,427,750.00 paid to ARRT directly from the GUCC’s trust account maintained by Continental Stock Transfer and Trust Company 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 shares (which is the maximum number of shares for each Seller). On August 14, 2023, Vellar delivered a Pricing Date Notice to the Purchaser for 1,268,085 Additional Shares, which were issued by the Purchaser effective as of that date. On August 4, 2023, ARRT delivered a Pricing Date Notice to ESGL for 550,000 Additional Shares, which were issued by the Purchaser effective as of that date. The sum of the Recycled Shares and the Additional Shares under the Forward Purchase Agreement is referred to as the “Number of Shares.” 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 (for an aggregate of $2,000,000), subject to the terms of the Forward Purchase Agreement (the “Additional Funds”). If a Seller provides Additional Funds to Counterparty, that Seller may deliver to Counterparty a Number of Shares Adjustment Notice, the effect of which is to reduce the Number of Shares by the number of shares specified in that notice with aggregate proceeds equal to the Additional Funds the Seller provided. 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 notwithstanding that the Company was not eligible to submit a request for Additional Funds on such date pursuant to the terms of the Forward Purchase Agreement. On September 20, 2023, Vellar provided Additional Funds in the amount of $1,000,000 to the Company upon a Funding Request by the Company as defined in the Forward Purchase Agreement, which amount comprises the aggregate net proceeds received by the Company from the Forward Purchase Agreement. The Company does not expect to receive any additional funds pursuant to the Forward Purchase Agreement. 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 shares following termination of the Forward Purchase Agreement and ARRT will pay no amounts to ESGL. 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, calculated as 2,200,000 Shares (the Recycled Shares and Additional Shares) less 2,147,359 Shares (the Number of Shares Adjustment). As 52,641 Shares multiplied by the VWAP of $0.45 less $4,400,000 (being the Settlement Amount Adjustment, calculated as the product of the Maximum Number of Shares and $2.00) is a negative number, neither Vellar nor ESGL is liable to the other party for any payment under the Forward Purchase Agreement. As a result of the conclusion of the Valuation Period, the obligations of Vellar and ESGL under the Forward Purchase Agreement have been terminated. ESGL Holdings Limited Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022

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% of its rights and obligations under the Forward Purchase Agreement to ACM ARRT K LLC (“ARRT”, together with Vellar, the “Sellers”). Following the assignment and novation, the rights and obligations of each Seller under its Forward Purchase Agreement were and are separate and distinct from the those of the other Seller, with each Seller acting independently of the other, without reference to or knowledge of the other Seller’s actions or inactions.

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 shares (the “Maximum Number of Shares”) of Company Class A common stock, or 4,400,000 in total. The Sellers made their purchases after the expiration of the redemption deadline for holders to redeem shares in connection with the Business Combination, in brokered transactions in the open market, typically from holders that had elected to redeem their shares. In aggregate, Vellar purchased 931,915 shares, and ARRT 500,000 shares of the Company’s Class A common stock (the “Recycled Shares”). In connection with these purchases, the Sellers revoked any redemption elections.

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 was paid to Vellar and $5,427,750.00 paid to ARRT directly from the GUCC’s trust account maintained by Continental Stock Transfer and Trust Company

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 shares (which is the maximum number of shares for each Seller). On August 14, 2023, Vellar delivered a Pricing Date Notice to the Purchaser for 1,268,085 Additional Shares, which were issued by the Purchaser effective as of that date. On August 4, 2023, ARRT delivered a Pricing Date Notice to ESGL for 550,000 Additional Shares, which were issued by the Purchaser effective as of that date. The sum of the Recycled Shares and the Additional Shares under the Forward Purchase Agreement is referred to as the “Number of Shares.”

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 (for an aggregate of $2,000,000), subject to the terms of the Forward Purchase Agreement (the “Additional Funds”). If a Seller provides Additional Funds to Counterparty, that Seller may deliver to Counterparty a Number of Shares Adjustment Notice, the effect of which is to reduce the Number of Shares by the number of shares specified in that notice with aggregate proceeds equal to the Additional Funds the Seller provided.

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 notwithstanding that the Company was not eligible to submit a request for Additional Funds on such date pursuant to the terms of the Forward Purchase Agreement. On September 20, 2023, Vellar provided Additional Funds in the amount of $1,000,000 to the Company upon a Funding Request by the Company as defined in the Forward Purchase Agreement, which amount comprises the aggregate net proceeds received by the Company from the Forward Purchase Agreement. The Company does not expect to receive any additional funds pursuant to the Forward Purchase Agreement.

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 shares following termination of the Forward Purchase Agreement and ARRT will pay no amounts to ESGL.

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, calculated as 2,200,000 Shares (the Recycled Shares and Additional Shares) less 2,147,359 Shares (the Number of Shares Adjustment). As 52,641 Shares multiplied by the VWAP of $0.45 less $4,400,000 (being the Settlement Amount Adjustment, calculated as the product of the Maximum Number of Shares and $2.00) is a negative number, neither Vellar nor ESGL is liable to the other party for any payment under the Forward Purchase Agreement. As a result of the conclusion of the Valuation Period, the obligations of Vellar and ESGL under the Forward Purchase Agreement have been terminated.

ESGL Holdings Limited

Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022

Schedule of deferred tax assets and liabilities (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Deferred Tax
Deferred tax assets recognized		$ 75,070
Deferred tax liabilities recognized	296,000	238,070
Net deferred tax liabilities	$ 296,000	$ 163,000

Critical accounting estimates, assumptions and judgements

12 Months Ended

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 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 (2022: US$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 (2022: US$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 (2022: US$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(2022: US$1,845,912).

(f)

Forward Purchase Agreement

In aggregate, Vellar purchased 931,915 shares, and ARRT 500,000 shares of the Company’s Class A common stock (the “Recycled Shares”). In connection with these purchases, the Sellers revoked any redemption elections. The purchases were recognized as a current asset in the financial statements as Prepaid Forward Purchase Agreement (“Prepaid FPA”), at the fair value at the time of the purchase transaction. For the financial year ended December 31, 2023, the fair value of the Prepaid FPA was assessed using a Monte Carlo simulation model to be US$969 and accordingly, an adjustment to the carrying amount of the Prepaid FPA was made.

ESGL Holdings Limited

Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022

Finance expense (Tables)

12 Months Ended

Dec. 31, 2023

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

Revenue

12 Months Ended

Dec. 31, 2023

Disclosure Of Revenue Abstract

Revenue

4. Revenue

Revenue classified by type of good or service is as follows :

	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.

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

Schedule of consolidated financial statements (Details)	12 Months Ended
Schedule of consolidated financial statements (Details)	Dec. 31, 2023	Dec. 31, 2022
Parent [member]
IfrsStatementLineItems [Line Items]
Place of incorporation and business	Cayman Island
Effective equity held by the Group	100.00%	100.00%
Subsidiaries [member]
IfrsStatementLineItems [Line Items]
Place of incorporation and business	British Virgin Islands
Effective equity held by the Group	100.00%	100.00%
Environmental Solutions Pte Ltd [member]
IfrsStatementLineItems [Line Items]
Place of incorporation and business	Singapore
Effective equity held by the Group	100.00%	100.00%

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

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
Director's fees [member]
IfrsStatementLineItems [Line Items]
Total Directors remuneration	52,252
Personal guarantee fee [member]
IfrsStatementLineItems [Line Items]
Total Directors remuneration		152,689
Employer’s 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 revenue classified by type of good or service (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Revenue	$ 6,164,173	$ 4,992,034
Sales of circular products [member]
IfrsStatementLineItems [Line Items]
Revenue	2,305,646	2,746,097
Waste disposal services [member]
IfrsStatementLineItems [Line Items]
Revenue	$ 3,858,527	$ 2,245,937

- Definition

The income arising in the course of an entity's ordinary activities. Income is increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2023-01-01
-Paragraph 28
-Subparagraph a
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2023-en-r&anchor=para_28_a&doctype=Standard
-URIDate 2023-03-23

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2023-01-01
-Paragraph 23
-Subparagraph a
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2023-en-r&anchor=para_23_a&doctype=Standard
-URIDate 2023-03-23

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2023-01-01
-Paragraph 32
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2023-en-r&anchor=para_32&doctype=Standard
-URIDate 2023-03-23

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 5
-IssueDate 2023-01-01
-Paragraph 33
-Subparagraph b
-Clause i
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=5&code=ifrs-tx-2023-en-r&anchor=para_33_b_i&doctype=Standard
-URIDate 2023-03-23

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2023-01-01
-Paragraph 33
-Subparagraph a
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2023-en-r&anchor=para_33_a&doctype=Standard
-URIDate 2023-03-23

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2023-01-01
-Paragraph 34
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2023-en-r&anchor=para_34&doctype=Standard
-URIDate 2023-03-23

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 12
-IssueDate 2023-01-01
-Paragraph B12
-Subparagraph b
-Clause v
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2023-en-r&anchor=para_B12_b_v&doctype=Appendix&subtype=B
-URIDate 2023-03-23

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 12
-IssueDate 2023-01-01
-Paragraph B10
-Subparagraph b
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2023-en-r&anchor=para_B10_b&doctype=Appendix&subtype=B
-URIDate 2023-03-23

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2023-01-01
-Paragraph 82
-Subparagraph a
-URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2023-en-r&anchor=para_82_a&doctype=Standard
-URIDate 2023-03-23

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Name IAS
-Number 1
-IssueDate 2023-01-01
-Paragraph 103
-URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2023-en-r&anchor=para_103&doctype=Standard
-URIDate 2023-03-23

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Name IAS
-Number 1
-IssueDate 2023-01-01
-Paragraph 102
-URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2023-en-r&anchor=para_102&doctype=Standard
-URIDate 2023-03-23

+ Details

Leases – The Group as a lessee (Details Narrative)	12 Months Ended
Leases – The Group as a lessee (Details Narrative)	Dec. 31, 2023
Leases Group As Lessee
Description of cross-reference to disclosures about leases	Lease contracts are entered into for fixed term of 1 month to 30 years.

Property, plant and equipment, net (Details Narrative) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Leasehold land and buildings	$ 16,532,686	$ 17,105,459
Gross carrying amount [member]
IfrsStatementLineItems [Line Items]
Leasehold land and buildings	$ 3,645,289	$ 4,118,381

Capital commitments

12 Months Ended

Dec. 31, 2023

Capital Commitments

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

Deferred tax (Tables)

12 Months Ended

Dec. 31, 2023

Deferred Tax

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

	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

Borrowings (Tables)

12 Months Ended

Dec. 31, 2023

Disclosure Of Borrowings Abstract

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

	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

Schedule of borrowings term loan (Details) (Parenthetical)	12 Months Ended
	Dec. 31, 2023
IfrsStatementLineItems [Line Items]
Interest rate	6.00%
Term Loan I [member]
IfrsStatementLineItems [Line Items]
Monthly instalments	120 months
Term Loan I [member] \| Bottom of range [member]
IfrsStatementLineItems [Line Items]
Interest rate	2.30%
Commercial rate interest	4.68%
Term Loan I [member] \| Top of range [member]
IfrsStatementLineItems [Line Items]
Interest rate	1.30%
Commercial rate interest	5.68%
Term Loan II [member]
IfrsStatementLineItems [Line Items]
Monthly instalments	7 years
Financing interest rate	3.00%
Term Loan II [member] \| Bottom of range [member]
IfrsStatementLineItems [Line Items]
Interest rate	2.65%
Term Loan II [member] \| Top of range [member]
IfrsStatementLineItems [Line Items]
Interest rate	3.45%
Term Loan IV [member]
IfrsStatementLineItems [Line Items]
Monthly instalments	5 years
Interest rate	2.00%
Term Loan V [member]
IfrsStatementLineItems [Line Items]
Monthly instalments	5 years
Interest rate	2.00%
Term Loan VI [member]
IfrsStatementLineItems [Line Items]
Monthly instalments	5 years
Interest rate	2.50%
Term Loan VII [member]
IfrsStatementLineItems [Line Items]
Monthly instalments	3 years
Interest rate	2.00%
Revolving credit [member]
IfrsStatementLineItems [Line Items]
Interest rate	2.00%
Interest rate	2.00%
Revolving credit [member] \| Bottom of range [member]
IfrsStatementLineItems [Line Items]
Fixed interest rate	1 month
Revolving credit [member] \| Top of range [member]
IfrsStatementLineItems [Line Items]
Fixed interest rate	6 months

Schedule of other operating expenses (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Other Operating Expenses
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)

Schedule of tax expense attributable to loss (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Tax Expense
- Movements in deferred tax liabilities	$ 133,000	$ 8,000
Tax expense attributable to loss	$ 133,000	$ 8,000

- Definition

The aggregate amount included in the determination of profit (loss) for the period in respect of current tax and deferred tax. [Refer: Current tax expense (income); Deferred tax expense (income)]

+ References + Details

Finance expense

12 Months Ended

Dec. 31, 2023

Finance Expense

Finance expense

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

Inventories (Details Narrative) - USD ($)	12 Months Ended
Inventories (Details Narrative) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Schedule Of Inventories
Cost of inventories recognized as an expense	$ 977,619	$ 1,093,194

Schedule of borrowings term loan (Details) - USD ($)

Dec. 31, 2023

Dec. 31, 2022

IfrsStatementLineItems [Line Items]

Total borrowings

$ 5,778,479

$ 5,798,641

Non-current portion

112,319

371,103

Current portion

5,666,160

5,427,538

Term Loan I [member]

IfrsStatementLineItems [Line Items]

Total borrowings

^[1]

201,945

271,035

Term Loan II [member]

IfrsStatementLineItems [Line Items]

Total borrowings

^[2]

1,266,912

Term Loan IV [member]

IfrsStatementLineItems [Line Items]

Total borrowings

^[3]

378,323

626,714

Term Loan V [member]

IfrsStatementLineItems [Line Items]

Total borrowings

^[4]

426,589

697,233

Term Loan VI [member]

IfrsStatementLineItems [Line Items]

Total borrowings

^[5]

924,276

1,278,261

Term Loan VII [member]

IfrsStatementLineItems [Line Items]

Total borrowings

^[6]

2,014,258

Trade receivables financing [member]

IfrsStatementLineItems [Line Items]

Total borrowings

81,231

Revolving credit [member]

IfrsStatementLineItems [Line Items]

Total borrowings

$ 1,751,857

$ 1,658,486

[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 months period commencing 2015. The interest rates charged were between 2.30% to 1.30% per annum below the bank’s commercial rate 2 for the 1st to 3rd year of the loan and thereafter at the bank’s Commercial Rate 2 (“CR2”) of 4.68% to 5.68% per annum. It contains a repayment on demand clause and therefore it is classified as current liabilities as at December 31, 2023 and 2022.
[2]	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 year period commencing from 2016. The interest rates charged were between 2.65% to 3.45% per annum below the bank’s prevailing Enterprise Financing Rate for the 1st to 3rd year of the loan and thereafter at Singapore Interbank Offered Rate (“SIBOR”) plus 3% per annum. Term loan II was fully repaid during the financial year 2023.
[3]	Term loan IV was obtained for working capital purposes. This loan is repayable by monthly instalments over a 5 year period commencing from year 2021. The interest rates charged are 2.00% per annum on monthly rests.
[4]	Term loan V was obtained for working capital purposes. This loan is repayable by monthly instalments over a 5 year period commencing from year 2021. The interest rates charged are 2% per annum. It contains a repayment on demand clause and therefore it is classified as current liabilities as at December 31, 2023 and 2022.
[5]	Term loan VI was obtained for purchasing of machineries for core business operations. This loan is repayable by monthly instalments over a 5 year period commencing from year 2021. The interest rates charged are 2.50% per annum on monthly rests. It contains a repayment on demand clause and therefore it is classified as current liabilities as at December 31, 2023 and 2022.
[6]	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 year period commencing year 2023. The interest rates charged are 2.0% above the Bank’s Cost of Funds. It contains a repayment on demand clause and therefore it is classified as current liabilities as at December 31, 2023 and 2022.

Property, plant and equipment, net (Tables)

12 Months Ended

Dec. 31, 2023

Notes and other explanatory information [abstract]

Schedule of property, plant and equipment

	Leasehold land and buildings			Plant and equipment			Machineries		Renovation		Motor vehicles			Furniture and fittings		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 land and buildings			Plant and equipment		Machineries		Renovation		Motor vehicles			Furniture and fittings		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			-		-		-					-		1,289,767
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
Net book value		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

Fair value measurements as at

December 31, 2023 categorized into

Quoted prices in

Significant

active markets for

other observable

unobservable

Fair value at

identical assets

inputs

December 31, 2023

(Level 1)

(Level 2)

(Level 3)

US$

Recurring fair value

measurement

Leasehold land and buildings:

- Industrial – Singapore

16,532,686

Fair value measurements as at

December 31, 2022 categorized into

Quoted prices in

active markets

for

Significant
other

Significant

Fair value at

identical

assets

observable inputs

unobservable
inputs

December 31, 2022

(Level 1)

(Level 2)

(Level 3)

US$

Recurring fair value

measurement

Leasehold land and buildings:

- Industrial - Singapore

17,105,459

Schedule of reconciliation of fair value measurements

Reconciliation of fair value measurements categorized within Level 3 of the fair value hierarchy:-

	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:-

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 to US$396 per square foot

US$67 to US$141 per square foot

Schedule of trade and other receivables (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
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

Loss per share (Tables)

12 Months Ended

Dec. 31, 2023

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	)

Basis of preparation (Details Narrative) - USD ($)	12 Months Ended
Basis of preparation (Details Narrative) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Basis Of Preparation
Net current liabilities	$ 13,800,000	$ 8,600,000
Current assets	1,464,436	1,288,678
Current liabilities	15,228,666	$ 9,898,647
Working capital	5,700,000
Proceeds from issuance of private placement	$ 2,500,000

Schedule of listing expenses (Details) - USD ($)	12 Months Ended
Schedule of listing expenses (Details) - USD ($)	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	$ 10.00

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

Schedule of share capital (Details) - shares	Dec. 31, 2023	Dec. 31, 2022
Share Capital
No. of ordinary shares	12,683,039	10,000

Trade and other receivables (Tables)

12 Months Ended

Dec. 31, 2023

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

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

Subsequent events

12 Months Ended

Dec. 31, 2023

Subsequent Events

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, calculated as 2,200,000 Shares (the Recycled Shares and Additional Shares) less 2,147,359 Shares (the Number of Shares Adjustment). As 52,641 Shares multiplied by the VWAP of $0.45 less $4,400,000 (being the Settlement Amount Adjustment, calculated as the product of the Maximum Number of Shares and $2.00) is a negative number, neither Vellar nor the Company is liable to the other party for any payment under the Forward Purchase Agreement. As a result of the conclusion of the Valuation Period, the obligations of Vellar and the Company under the Forward Purchase Agreement have been terminated.

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 Ordinary Shares to the Purchaser at a purchase price of US$0.25 per share. The initial closing under the Purchase Agreement took place on March 28, 2024 pursuant to which the Purchaser purchased 2,000,000 Ordinary Shares. The second and final closing under the Purchase Agreement took place on April 3, 2024 pursuant to which the Purchaser purchased 8,000,000 Ordinary Shares. The Company received gross proceeds of $2,500,000 in the private placement.

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.

Schedule of ROU assets classified within property, plant and equipment (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Carrying amounts ROU assets	$ 2,130,216	$ 2,321,792
Land and buildings [member]
IfrsStatementLineItems [Line Items]
Carrying amounts ROU assets	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	$ 130,642	$ 113,707

Income tax expense

12 Months Ended

Dec. 31, 2023

Income Tax Expense

Income tax expense

9. Income tax expense

	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 :

	2023			2022
	US$			US$

Loss before income tax		(94,846,338	)		(2,383,812	)

Tax calculated at tax rate of 17% (2022: 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

General information and reorganization transactions

12 Months Ended

Dec. 31, 2023

General Information And Reorganization Transactions

General information and reorganization transactions

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 Floor, Johnson’s Ghut, Tortola, British Virgin Islands.

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.

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

Borrowings (Details Narrative) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Disclosure Of Borrowings Abstract
Immediate payment percentage	90.00%
Settlement payment percentage	10.00%
Leasehold land and buildings	$ 16,532,686	$ 17,105,459

Schedule of property, plant and equipment depreciation, estimated useful lives (Details)	12 Months Ended
	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
Property and equipment [member] \| Bottom of range [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, estimated useful lives	3 years
Property and equipment [member] \| Top of range [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, estimated useful lives	5 years
Machinery [member] \| Bottom of range [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, estimated useful lives	2 years
Machinery [member] \| Top of range [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, estimated useful lives	10 years
Renovation [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, estimated useful lives	5 years
Motor vehicles [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, estimated useful lives	10 years
Fixtures and fittings [member]
IfrsStatementLineItems [Line Items]
Property, plant and equipment, estimated useful lives	5 years

Property, plant and equipment, net

12 Months Ended

Dec. 31, 2023

Notes and other explanatory information [abstract]

Property, plant and equipment, net

10. Property, plant and equipment, net

	Leasehold land and buildings			Plant and equipment			Machineries		Renovation		Motor vehicles			Furniture and fittings		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 land and buildings			Plant and equipment		Machineries		Renovation		Motor vehicles			Furniture and fittings		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			-		-		-					-		1,289,767
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
Net book value		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 (2022: US$17,105,459) were mortgaged to secure a term loan (Note 17).

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:-

Fair value measurements as at

December 31, 2023 categorized into

Quoted prices in

Significant

active markets for

other observable

unobservable

Fair value at

identical assets

inputs

December 31, 2023

(Level 1)

(Level 2)

(Level 3)

US$

Recurring fair value

measurement

Leasehold land and buildings:

- Industrial – Singapore

16,532,686

Fair value measurements as at

December 31, 2022 categorized into

Quoted prices in

active markets

for

Significant
other

Significant

Fair value at

identical

assets

observable inputs

unobservable
inputs

December 31, 2022

(Level 1)

(Level 2)

(Level 3)

US$

Recurring fair value

measurement

Leasehold land and buildings:

- Industrial - Singapore

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:-

	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:-

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 to US$396 per square foot

US$67 to US$141 per square foot

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 and US$4,118,381 respectively.

ESGL Holdings Limited

Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022

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

Schedule of inventories (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Schedule Of Inventories
Raw materials	$ 64,184	$ 116,721
Finished goods		104,430
Inventories	$ 64,184	$ 221,151

Schedule of liquidity risk (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Trade and other payables	$ 6,560,559	$ 4,285,345
Deferred underwriting fee payable	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

- Definition

The amount of liabilities that are: (a) a contractual obligation: (i) to deliver cash or another financial asset to another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or (b) a contract that will, or may be, settled in the entity’s own equity instruments and is: (i) a non-derivative for which the entity is, or may be, obliged to deliver a variable number of the entity’s own equity instruments; or (ii) a derivative that will, or may be, settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose, rights, options or warrants to acquire a fixed number of the entity’s own equity instruments for a fixed amount of any currency are equity instruments if the entity offers the rights, options or warrants pro rata to all of its existing owners of the same class of its own non-derivative equity instruments. Also, for those purposes the entity’s own equity instruments do not include puttable financial instruments that are classified as equity instruments in accordance with paragraphs 16A-16B of IAS 32, instruments that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation and are classified as equity instruments in accordance with paragraphs 16C-16D of IAS 32, or instruments that are contracts for the future receipt or delivery of the entity’s own equity instruments. As an exception, an instrument that meets the definition of a financial liability is classified as an equity instrument if it has all the features and meets the conditions in paragraphs 16A-16B or paragraphs 16C-16D of IAS 32. [Refer: Financial instruments, class [member]; Financial assets; Derivatives [member]]

+ References + Details

Schedule of other income (Details) - USD ($)	12 Months Ended
Schedule of other income (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Other Income
Interest income	$ 18,308	$ 4
Gain from disposal of motor vehicle		26,586
Government grants	42,819	76,588
Grant from AEPW1	72,000	116,000
Warehousing and logistic services	36,357	175,650
Others	335	1,545
Other income	$ 169,819	$ 396,373

Basis of preparation (Policies)

12 Months Ended

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 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 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 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:

		Useful lives
Leasehold land and buildings		Over the lease term period ranging from 2 to 30 years
Plant and equipment		3 to 5 years
Machineries		2 to 10 years
Renovation		5 years
Motor vehicles		10 years
Furniture and fittings		5 years

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:

		Useful lives
Software		3 years

Borrowing costs

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 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 Years ended December 31, 2023 and 2022

2. Significant accounting policies (continued)

2.9 Financial assets (continued)

(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 (continued)

(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.

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 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.

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 Years ended December 31, 2023 and 2022

2. Significant accounting policies (continued)

2.13 Income Taxes (continued)

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 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$”). Our business and operations are primarily conducted in Singapore through our subsidiary, ESA, that is domiciled there. The functional currency of ESA is US$ 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.

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.

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;

(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 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 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.

Schedule of short-term leases (Details) - USD ($)	12 Months Ended
Schedule of short-term leases (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Leases Group As Lessee
Expense relating to short-term leases	$ 372,721	$ 157,687
Total cash outflow for leases	$ 614,191	$ 372,642

Other income

12 Months Ended

Dec. 31, 2023

Other Income

Other income

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 AEPW¹		72,000		116,000
Warehousing and logistic services		36,357		175,650
Others		335		1,545
Other income		169,819		396,373

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

Forward Purchase Agreements (“FPA”) (Details Narrative) - USD ($)	Mar. 21, 2024	Aug. 04, 2023	Jul. 27, 2023	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				12,683,039					10,000
Value of shares issued				$ 10,892					$ 10,000
Forward purchase agreement [member] \| Vellar Opportunities Fund Master, Ltd [member]
IfrsStatementLineItems [Line Items]
Percentage of rights and obligations			50.00%
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			$ 5,427,750.00
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	$ 2.00
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

Employee benefits expense (Tables)

12 Months Ended

Dec. 31, 2023

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

Subsequent events (Details Narrative) - USD ($)	Apr. 03, 2024	Mar. 21, 2024	Mar. 28, 2024	Mar. 27, 2024	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Number of shares issued					12,683,039	10,000
Purchase price per share					$ 10.00
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		$ 2.00
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

Inventories (Tables)

12 Months Ended

Dec. 31, 2023

Schedule Of Inventories

Schedule of inventories

	2023		2022
	US$		US$
Raw materials		64,184		116,721
Finished goods		-		104,430
Inventories		64,184		221,151

Related party transactions

12 Months Ended

Dec. 31, 2023

Related Party Transactions

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
		252,666		101,257

ESGL Holdings Limited

Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022

Borrowings

12 Months Ended

Dec. 31, 2023

Disclosure Of Borrowings Abstract

Borrowings

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 :

	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 months period commencing 2015. The interest rates charged were between 2.30% to 1.30% per annum below the bank’s commercial rate 2 for the 1st to 3rd year of the loan and thereafter at the bank’s Commercial Rate 2 (“CR2”) of 4.68% to 5.68% per annum. It contains a repayment on demand clause and therefore it is classified as current liabilities as at December 31, 2023 and 2022.

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% of the receivables upon presentation of relevant documents by the Group. The remaining 10% will be paid upon settlement of the receivables by the customer. This arrangement has recourse and the Group is liable for any unpaid receivables.

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 year period commencing from 2016. The interest rates charged were between 2.65% to 3.45% per annum below the bank’s prevailing Enterprise Financing Rate for the 1st to 3rd year of the loan and thereafter at Singapore Interbank Offered Rate (“SIBOR”) plus 3% per annum. Term loan II was fully repaid during the financial year 2023.

	(iii)	Term loan IV was obtained for working capital purposes. This loan is repayable by monthly instalments over a 5 year period commencing from year 2021. The interest rates charged are 2.00% per annum on monthly rests.

	(iv)	Term loan V was obtained for working capital purposes. This loan is repayable by monthly instalments over a 5 year period commencing from year 2021. The interest rates charged are 2% per annum. It contains a repayment on demand clause and therefore it is classified as current liabilities as at December 31, 2023 and 2022.

	(v)	Term loan VI was obtained for purchasing of machineries for core business operations. This loan is repayable by monthly instalments over a 5 year period commencing from year 2021. The interest rates charged are 2.50% per annum on monthly rests. It contains a repayment on demand clause and therefore it is classified as current liabilities as at December 31, 2023 and 2022.

	(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 year period commencing year 2023. The interest rates charged are 2.0% above the Bank’s Cost of Funds. It contains a repayment on demand clause and therefore it is classified as current liabilities as at December 31, 2023 and 2022.

	(vii)	Revolving credit is obtained for working capital purposes. These loans are repayable 1 to 6 months from the date of each drawdown. The interest rates charged are 2.00% per annum above the Bank’s Cost of Funds or 2.00% above the prevailing SIBOR per annum. It contains a repayment on demand clause and therefore it is classified as current liabilities as at December 31, 2023 and 2022.

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 (2022: US$17,105,459) (Note 10);

	(b)	Several guarantees from a director and a former director of the Group in their personal capacities.

Share capital (Details Narrative) - USD ($)	12 Months Ended
Share capital (Details Narrative) - USD ($)	Dec. 31, 2023	Dec. 04, 2023	Aug. 14, 2023	Aug. 04, 2023	Jul. 27, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Number of shares issued	12,683,039					10,000
Deemed price	$ 10.00
Business combination merger agreement [member]
IfrsStatementLineItems [Line Items]
Number of shares issued	6,764,150
Deemed price	$ 10.00
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

Deferred tax (Details Narrative) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Deferred Tax
Tax losses		$ 442,000

Comparative information

12 Months Ended

Dec. 31, 2023

Comparative Information

Comparative information

29. Comparative information

Professional fees amounting to US$981,701 in the year ended December 31, 2022 has been reclassified as Listing Expenses for the year ended December 31, 2023.

Employee benefits expense

12 Months Ended

Dec. 31, 2023

Employee Benefits Expense

Employee benefits expense

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

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

Intangible assets, net (Tables)

12 Months Ended

Dec. 31, 2023

Notes and other explanatory information [abstract]

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

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 of financial year 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
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
Loss for the year							(2,391,812)	(2,391,812)
Ending balance, value 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
Net surplus on revaluation of leasehold property		(186,684)	337,283					150,599
Loss for the year							(94,979,338)	(94,979,338)
Ending balance, value at Dec. 31, 2023	$ 10,892	$ 14,971,140	$ (123,198)	$ 89,725,052	$ 3,422,799		$ (99,985,928)	$ 8,020,757

- Definition

The amount of residual interest in the assets of the entity after deducting all its liabilities.

+ References + Details

- Definition

The total of income less expenses from continuing and discontinued operations, excluding the components of other comprehensive income. [Refer: Other comprehensive income]

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 7
-IssueDate 2023-01-01
-Paragraph 18
-Subparagraph b
-URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=7&code=ifrs-tx-2023-en-r&anchor=para_18_b&doctype=Standard
-URIDate 2023-03-23

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 1
-IssueDate 2023-01-01
-Paragraph 32
-Subparagraph a
-Clause ii
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=1&code=ifrs-tx-2023-en-r&anchor=para_32_a_ii&doctype=Standard
-URIDate 2023-03-23

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 1
-IssueDate 2023-01-01
-Paragraph 24
-Subparagraph b
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=1&code=ifrs-tx-2023-en-r&anchor=para_24_b&doctype=Standard
-URIDate 2023-03-23

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2023-01-01
-Paragraph 28
-Subparagraph b
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2023-en-r&anchor=para_28_b&doctype=Standard
-URIDate 2023-03-23

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2023-01-01
-Paragraph 23
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2023-en-r&anchor=para_23&doctype=Standard
-URIDate 2023-03-23

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 12
-IssueDate 2023-01-01
-Paragraph B10
-Subparagraph b
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2023-en-r&anchor=para_B10_b&doctype=Appendix&subtype=B
-URIDate 2023-03-23

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 17
-IssueDate 2023-01-01
-Paragraph 113
-Subparagraph b
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=17&code=ifrs-tx-2023-en-r&anchor=para_113_b&doctype=Standard
-URIDate 2023-03-23

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2023-01-01
-Paragraph 81A
-Subparagraph a
-URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2023-en-r&anchor=para_81A_a&doctype=Standard
-URIDate 2023-03-23

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2023-01-01
-Paragraph 106
-Subparagraph d
-Clause i
-URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2023-en-r&anchor=para_106_d_i&doctype=Standard
-URIDate 2023-03-23

+ Details

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	0.00%	0.00%
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	5.00%	66.00%
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	0.00%	0.00%
Gross carrying amount		$ 2,116
Loss allowance
Later than six months [member]
IfrsStatementLineItems [Line Items]
Expected loss rate	100.00%	0.00%
Gross carrying amount	$ 43,550
Loss allowance	$ 43,550

Financial risk management (Details Narrative) - USD ($)	12 Months Ended
Financial risk management (Details Narrative) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Tax rate effect	10.00%	10.00%
Borrowings interest rate	0.50%	0.50%
Loss after tax	$ 18,831	$ 18,554
Trade receivables percentage	58.80%	48.00%
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

Schedule of property, plant and equipment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Beginning Balance	$ 22,493,283
Net book value	21,786,365	$ 22,493,283
Leasehold land and buildings [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	19,305,393
Net book value	18,531,991	19,305,393
Property and equipment [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	2,695,918
Net book value	2,856,380	2,695,918
Machinery [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	339,421
Net book value	238,885	339,421
Renovation [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	1,189
Net book value	2,709	1,189
Motor vehicles [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	146,549
Net book value	151,442	146,549
Fixtures and fittings [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	4,813
Net book value	4,958	4,813
Gross carrying amount [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	26,735,336	17,824,856
Additions	651,044	502,677
Disposal	(66,695)
Lease modifications	8,230	1,289,767
Revaluation	(910,055)
Net book value	26,755,143	26,735,336
Revaluation	(723,371)
Revaluation		7,065,299
Exchange difference		52,737
Gross carrying amount [member] \| Leasehold land and buildings [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	19,828,888	11,414,034
Additions
Disposal
Lease modifications	8,230	1,296,818
Revaluation	(910,055)
Net book value	19,264,346	19,828,888
Revaluation	(723,371)
Revaluation		7,065,299
Exchange difference		52,737
Gross carrying amount [member] \| Property and equipment [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	4,385,903	3,898,326
Additions	580,125	487,577
Disposal	(5,721)
Lease modifications
Revaluation
Net book value	4,960,307	4,385,903
Revaluation
Exchange difference
Gross carrying amount [member] \| Machinery [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	1,213,687	1,213,687
Additions
Disposal
Lease modifications
Revaluation
Net book value	1,213,687	1,213,687
Revaluation
Exchange difference
Gross carrying amount [member] \| Renovation [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	487,229	487,229
Additions	3,010
Disposal
Lease modifications
Revaluation
Net book value	490,239	487,229
Revaluation
Exchange difference
Gross carrying amount [member] \| Motor vehicles [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	692,142	684,093
Additions	63,423	15,100
Disposal	(60,974)
Lease modifications
Revaluation
Net book value	694,591	692,142
Revaluation
Exchange difference
Gross carrying amount [member] \| Fixtures and fittings [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	127,487	127,487
Additions	4,486
Disposal
Lease modifications
Revaluation
Net book value	131,973	127,487
Revaluation
Revaluation
Exchange difference
Accumulated depreciation [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	4,242,053	3,536,265
Depreciation charge	1,501,809	1,661,403
Disposal		(4,045)
Net book value	4,968,778	4,242,053
Disposal	(51,713)
Disposal		(7,051)
Revaluation		(951,570)
Accumulated depreciation [member] \| Leasehold land and buildings [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	523,495	348,207
Depreciation charge	932,231	1,126,858
Disposal
Net book value	732,355	523,495
Disposal
Revaluation		(951,570)
Accumulated depreciation [member] \| Property and equipment [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	1,689,985	1,315,480
Depreciation charge	416,516	374,505
Disposal
Net book value	2,103,927	1,689,985
Disposal	(2,574)
Revaluation
Accumulated depreciation [member] \| Machinery [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	874,266	772,407
Depreciation charge	100,536	101,859
Disposal
Net book value	974,802	874,266
Disposal
Revaluation
Accumulated depreciation [member] \| Renovation [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	486,040	478,565
Depreciation charge	1,490	7,475
Disposal
Net book value	487,530	486,040
Disposal
Revaluation
Accumulated depreciation [member] \| Motor vehicles [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	545,593	506,219
Depreciation charge	46,695	43,419
Disposal		(4,045)
Net book value	543,149	545,593
Disposal	(49,139)
Disposal		(7,051)
Revaluation
Accumulated depreciation [member] \| Fixtures and fittings [member]
IfrsStatementLineItems [Line Items]
Beginning Balance	122,674	115,387
Depreciation charge	4,341	7,287
Disposal
Net book value	127,015	122,674
Disposal
Revaluation

Critical accounting estimates, assumptions and judgements (Details Narrative) - USD ($)	Dec. 31, 2023	Dec. 04, 2023	Aug. 14, 2023	Aug. 04, 2023	Jul. 27, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Property, plant and equipment	$ 21,786,365					$ 22,493,283
Inventories	64,184					221,151
Trade receivables	461,497					389,648
Intangible assets, net	$ 2,381,465					$ 1,845,912
Number of shares issued	12,683,039					10,000
Prepaid Forward Purchase Agreement	$ 969
Forward purchase agreement [member]
IfrsStatementLineItems [Line Items]
Ownership interest percentage					50.00%
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 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

Share capital

12 Months Ended

Dec. 31, 2023

Share Capital

Share capital

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 newly issued ordinary shares of ESGL at a deemed price of $10.00 per share.

In addition, at the closing of the Business Combination and after giving effect to the payments to GUCC’s redeeming stockholders, 4,100,804 GUCC’s shares remains in the share capital of ESGL.

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 and 550,000 shares (“Additional Shares”) to Vellar and ACM respectively upon receipt of a Pricing Date notice from both parties (Note 24) on August 14 and 4, 2023.

ESGL Holdings Limited

Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022

Trade and other payables

12 Months Ended

Dec. 31, 2023

Trade And Other Payables

Trade and other payables

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% per annum and are repayable on demand. As of December 31, 2023 the interest on the amount due to directors was US$48,671 (2022 : US$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 (2022 : US$544,311) of contract liabilities was recognized as revenue in the profit or loss statement.

ESGL Holdings Limited

Notes to the Financial Statements for the Financial Years ended December 31, 2023 and 2022

Income tax expense (Tables)

12 Months Ended

Dec. 31, 2023

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

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% (2022: 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

Revenue (Tables)

12 Months Ended

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 :

	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 operating expenses

12 Months Ended

Dec. 31, 2023

Other Operating Expenses

Other operating expenses

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

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

Schedule of lease liabilities (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Leases Group As Lessee
Current	$ 192,282	$ 185,764
Non-current	1,974,524	2,071,571
Lease liabilities	$ 2,166,806	$ 2,257,335

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

Reserves

12 Months Ended

Dec. 31, 2023

Reserves

Reserves

14. Reserves

(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

Schedule of currency exposure (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
DisclosureOfFinancialRiskManagementLineItems [Line Items]
Cash and cash equivalents	$ 366,761	$ 252,399	$ 137,014
Trade and other receivables	1,032,522	815,128
Prepaid forward purchase agreement	969
Financial assets	1,400,252	1,067,524
Trade and other payables	6,560,559	4,285,345
Borrowings	5,778,479	5,798,641
Deferred underwriting fee payable	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
DisclosureOfFinancialRiskManagementLineItems [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
DisclosureOfFinancialRiskManagementLineItems [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

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

Schedule of deferred tax liabilities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Deferred Tax
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

Leases – The Group as a lessee

12 Months Ended

Dec. 31, 2023

Leases Group As Lessee

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 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

	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
		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

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. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. At the end of the current financial year, the lease for one of the properties was extended by 20 years, ending in November 2050.

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

Schedule of income tax rates to profit or loss before income tax expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Tax Expense
Loss before income tax	$ (94,846,338)	$ (2,383,812)
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
Tax expense attributable to loss	$ 133,000	$ 8,000

Consolidated Statement of Cash Flows - USD ($)	12 Months Ended
Consolidated Statement of Cash Flows - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities
Loss before income tax	$ (94,846,338)	$ (2,383,812)
Adjustments for:
- Impairment loss on receivable		44,271
- Depreciation of property, plant and equipment	1,501,809	1,661,403
- Amortisation of intangible assets	853,030	638,849
- Interest income	(18,308)	(4)
- Interest expense	388,717	246,359
- Loss/(gain) on disposal of property, plant and equipment	12,852	(26,586)
- Listing expense	93,067,324
- Foreign exchange adjustment	256,558	3,331
Total Adjustments	1,215,644	183,811
Changes in operating assets and liabilties :
- Trade and other receivables	(210,649)	(384,221)
- Inventories	156,967	378,606
- Trade and other payables	1,368,648	1,791,714
- Prepaid forward purchase agreement	969
- Deferred underwriting fees payable	2,753,125
Net cash generated from operating activities	5,282,766	1,969,910
Cash flows from investing activities
Purchase of property, plant and equipment	(651,044)	(502,677)
Proceeds from disposal of property, plant and equipment	2,130	29,592
Additions to intangible assets	(1,388,583)	(1,011,193)
Interest received	18,308	4
Net cash used in investing activities	(2,019,189)	(1,484,274)
Changes from financing cash flows:
Proceeds from bank borrowings	3,596,071
Repayment of bank borrowings	(3,775,481)	(1,537,495)
Shares issuance	754,448	1,600,000
Settlement of Promissory Note	(3,150,000)
Repayments of lease liabilities	(185,536)	(186,397)
Interest paid	(388,717)	(246,359)
Net cash used in financing activities	(3,149,215)	(370,251)
Net increase in cash and bank balances	114,362	115,385
Cash and cash equivalents
Beginning of the financial year	252,399	137,014
End of the financial year	366,761	252,399
Beginning balance	8,055,976	8,497,789
Changes from financing cash flows:
Repayment of bank loans	(3,775,481)	(1,537,495)
Principal element of lease payments	(185,536)	(186,397)
Borrowing cost paid	(388,717)	(246,359)
Total change from financing cash flows	(753,663)	(1,970,251)
Other changes:
Exchange adjustments	246,025	(14,739)
Lease modification	8,230	1,296,818
Interest expenses	388,717	246,359
Total other changes	642,972	1,528,438
Proceeds from bank borrowings	3,596,071
Ending balance	7,945,285	8,055,976
Lease liabilities [member]
Adjustments for:
- Interest expense	55,934	28,559
Cash and cash equivalents
Beginning balance	2,257,335	1,150,764
Changes from financing cash flows:
Repayment of bank loans
Principal element of lease payments	(185,536)	(186,397)
Borrowing cost paid	(55,934)	(28,558)
Total change from financing cash flows	(241,470)	(214,955)
Other changes:
Exchange adjustments	86,777	(3,850)
Lease modification	8,230	1,296,818
Interest expenses	55,934	28,558
Total other changes	150,941	1,321,526
Proceeds from bank borrowings
Ending balance	2,166,806	2,257,335
Long-term borrowings [member]
Cash and cash equivalents
Beginning balance	5,798,641	7,347,025
Changes from financing cash flows:
Repayment of bank loans	(3,775,481)	(1,537,495)
Principal element of lease payments
Borrowing cost paid	(332,783)	(217,801)
Total change from financing cash flows	(512,193)	(1,755,296)
Other changes:
Exchange adjustments	159,248	(10,889)
Lease modification
Interest expenses	332,783	217,801
Total other changes	492,031	206,912
Proceeds from bank borrowings	3,596,071
Ending balance	$ 5,778,479	$ 5,798,641

Cover	12 Months Ended
Cover	Dec. 31, 2023 shares
Entity Addresses [Line Items]
Document Type	20-F
Amendment Flag	false
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Document Period End Date	Dec. 31, 2023
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	001-41772
Entity Registrant Name	ESGL HOLDINGS LIMITED
Entity Central Index Key	0001957538
Entity Incorporation, State or Country Code	E9
Entity Address, Address Line One	101 Tuas South Avenue 2
Entity Address, City or Town	Singapore
Entity Address, Country	SG
Entity Address, Postal Zip Code	637226
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Document Accounting Standard	International Financial Reporting Standards
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	22,998,039
Document Financial Statement Error Correction [Flag]	false
Auditor Name	Assentsure PAC
Auditor Location	Singapore
Auditor Firm ID	6783
Ordinary shares, par value $0.0001 per share [member]
Entity Addresses [Line Items]
Title of 12(b) Security	Ordinary shares, par value $0.0001 per share
Trading Symbol	ESGL
Security Exchange Name	NASDAQ
Warrants to purchase ordinary shares [member]
Entity Addresses [Line Items]
Title of 12(b) Security	Warrants to purchase ordinary shares
Trading Symbol	ESGLW
Security Exchange Name	NASDAQ
Business Contact [Member]
Entity Addresses [Line Items]
Entity Address, Address Line One	101 Tuas South Avenue 2
Entity Address, City or Town	Singapore
Entity Address, Country	SG
Entity Address, Postal Zip Code	637226
City Area Code	+65
Local Phone Number	6653 2299
Contact Personnel Name	Mr. Quek Leng Chuang
Contact Personnel Email Address	queklc@env-solutions.com

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

Trade and other payables (Tables)

12 Months Ended

Dec. 31, 2023

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

Schedule of interest expense (Details) - USD ($)	12 Months Ended
Schedule of interest expense (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Leases Group As Lessee
Interest expense on lease liabilities	$ 55,934	$ 28,559

Financial risk management

12 Months Ended

Dec. 31, 2023

Financial Risk Management

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 (continued)

	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 (continued)

(i)

Currency risk (continued)

If the USD changes against the SGD by 10% (2022: 10%) respectively with all other variables including tax rate being held constant, the effects arising from the net financial liabilities/assets position will be as follows:

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% (2022: 0.5%) with all other variables including tax rate being held constant, the loss after tax for the financial year would have been lower/higher by US$18,831 (2022: US$18,554) as a result of higher/lower interest expense on these borrowings.

(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 (continued)

(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% of the total trade receivables were from three of the Group’s largest customers. In 2022, 48.0% of total trade receivables were from three of the Group largest customers.

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:

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 (continued)

(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:-

	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 1 year US$		Between 2 and 5 years US$		More than 5 years US$

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 public warrants and 377,331 private warrants. The warrant entitles the holder thereof to purchase one ESGL ordinary share at a price of $11.50 per full share. ESGL will not issue fractional shares. The warrants will expire five years after the consummation of the Business Combination.

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 per warrant:

	●	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, and
	●	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, value of ESGL’s total outstanding warrants was approximately US$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

Related party transactions (Tables)

12 Months Ended

Dec. 31, 2023

Related Party Transactions

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
		252,666		101,257

Leases – The Group as a lessee (Tables)

12 Months Ended

Dec. 31, 2023

Leases Group As Lessee

Schedule of ROU assets classified within property, plant and equipment

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
		2,130,216		2,321,792

Schedule of depreciation charge

(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

	2023		2022
	US$		US$

Interest expense on lease liabilities		55,934		28,559

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

Inventories

12 Months Ended

Dec. 31, 2023

Schedule Of Inventories

Inventories

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 (2022: US$1,093,194) for the year ended December 31, 2023.

Deferred tax

12 Months Ended

Dec. 31, 2023

Deferred Tax

Deferred tax

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 (2022 : US$442,000) which can be carried forward indefinitely to offset future taxable profits.

	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

Loss per share

12 Months Ended

Dec. 31, 2023

Loss Per Share

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	)

¹The number of shares for 2022 has been retrospectively restated to the equivalent number of shares reflecting the ratio established during the Business Combination

Schedule of valuation techniques used and key inputs to valuation of leasehold land and buildings (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Leasehold land and buildings per square foot	$ 16,532,686	$ 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 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

Group information (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of consolidated financial statements

The consolidated financial statements of the Group include :

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

Schedule of respect of the interest-bearing borrowings trade and other payables (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Total Bank borrowings repayable	$ 5,778,479	$ 5,798,641
On demand [member]
IfrsStatementLineItems [Line Items]
Total Bank borrowings repayable	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 loss per share (Details) - USD ($)	12 Months Ended
Schedule of loss per share (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Loss 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
Loss per share - Basic	$ (14.69)	$ (0.37)
Loss per share - Diluted	$ (14.69)	$ (0.37)

- Definition

The total of income less expenses from continuing and discontinued operations, excluding the components of other comprehensive income. [Refer: Other comprehensive income]

+ References

+ Details

Group information

12 Months Ended

Dec. 31, 2023

Group information

22. Group information

Subsidiaries

The consolidated financial statements of the Group include :

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

Financial risk management (Tables)

12 Months Ended

Dec. 31, 2023

Financial Risk Management

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 (continued)

	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

	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:

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 (continued)

(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:-

	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

	Less than 1 year US$		Between 2 and 5 years US$		More than 5 years US$

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

Schedule of trade and other payables (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Trade And Other Payables
- Non-related parties	$ 528,865	$ 525,588
Trade payables	528,865	525,588
- 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

Schedule of finance expense (Details) - USD ($)	12 Months Ended
Schedule of finance expense (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Interest expenses	$ 388,717	$ 246,359
Lease liabilities [member]
IfrsStatementLineItems [Line Items]
Interest expenses	55,934	28,559
Short-term borrowings [member]
IfrsStatementLineItems [Line Items]
Interest expenses	284,112	217,800
Loans from Directors [Member]
IfrsStatementLineItems [Line Items]
Interest expenses	$ 48,671

Trade and other payables (Details Narrative) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Trade And Other Payables
Unsecured, bear interests	6.00%
Amount due to directors	$ 48,671	$ 8,893
Contract liabilities	$ 85,536	$ 544,311

Schedule of employee benefits expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Employee Benefits Expense
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

Trade and other receivables

12 Months Ended

Dec. 31, 2023

Trade And Other Receivables

Trade and other receivables

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 (2022: US$26,485) that were past due at the reporting date but were not impaired. These receivables were unsecured and the analysis of their aging based on their trade date at the reporting date is as follows:

	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 (2022 : US$46,768).

Basis of preparation (Tables)

12 Months Ended

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:

		Useful lives
Leasehold land and buildings		Over the lease term period ranging from 2 to 30 years
Plant and equipment		3 to 5 years
Machineries		2 to 10 years
Renovation		5 years
Motor vehicles		10 years
Furniture and fittings		5 years

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:

		Useful lives
Software		3 years

Consolidated Statements of Operations - USD ($)	12 Months Ended
Consolidated Statements of Operations - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Profit or loss [abstract]
Revenue	$ 6,164,173	$ 4,992,034
Other income	169,819	396,373
Cost of inventory	(977,619)	(1,093,194)
Logistics costs	(925,225)	(689,762)
Depreciation of property, plant and equipment	(1,501,809)	(1,661,403)
Amortization of intangible assets	(853,030)	(638,849)
Employee benefits expense	(1,364,214)	(933,124)
Finance expense	(388,717)	(246,359)
Other operating expenses	(2,102,392)	(1,527,827)
Listing expenses	(93,067,324)	(981,701)
Loss before income tax	(94,846,338)	(2,383,812)
Income tax expense	(133,000)	(8,000)
Net loss and comprehensive loss	(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
Basic loss per share	$ (14.69)	$ (0.37)
Diluted loss per share	$ (14.69)	$ (0.37)

Basis of preparation

12 Months Ended

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.

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 million (2022 : US$8.6 million). As of December 31, 2023, the Group’s current assets were approximately US$1.5 million and its current liabilities were approximately US$15.2 million. The negative working capital was primarily attributable to the deferred underwriting fee payable and the classification of certain bank loan balances of approximately US$5.7 million as current liabilities as the relevant bank loan agreements allow the banks to demand immediate repayments even though they were not due for repayment within a year. To-date, the Group has been able to service its loan repayments and there were no indications that the banks intend to recall the loans.

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 million in a private share placement to an investor subsequent to year end.

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

	●	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 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.

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 from contracts with customers

(a)

Rendering of services

(b)

Sale of goods

Other revenue

Interest income

Contract assets

2.4 Government grants

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

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.

(ii)

Components of costs

(b)

Depreciation

Depreciation is calculated using the straight-line method to allocate depreciable amounts over the estimated useful lives as follows:

		Useful lives
Leasehold land and buildings		Over the lease term period ranging from 2 to 30 years
Plant and equipment		3 to 5 years
Machineries		2 to 10 years
Renovation		5 years
Motor vehicles		10 years
Furniture and fittings		5 years

Fully depreciated property, plant and equipment are retained in the financial statements until they are no longer in use.

(c)

Subsequent expenditure

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

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:

		Useful lives
Software		3 years

2.7 Borrowing costs

Borrowing costs are recognized in profit or loss using the effective interest method.

2.8 Impairment of non-financial assets

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.

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 subsequent measurement

(b)

Impairment of financial assets

ESGL Holdings Limited

Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022

2. Significant accounting policies (continued)

2.9 Financial assets (continued)

(b)

Impairment of financial assets (continued)

(i) Significant increase in credit risk

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.

(ii) Definition of default

(iii) Credit-impaired financial assets

	(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 (continued)

(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

(v) Measurement and recognition of ECL

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.

(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.

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

Trade and other payables are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest method.

(a)

Derecognition

(b)

Offsetting of financial instruments

2.11 Leases

When the Group is the lessee

Right-of-use assets

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

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.

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.

Short-term and low-value leases

Variable 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)

●

When the Group is the lessor

Classification and measurement of leases

Refundable rental deposits

Lease modification

ESGL Holdings Limited

Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022

2. Significant accounting policies (continued)

2.12 Inventories

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.

2.13 Income taxes

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.

	●	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.

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 (continued)

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.

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

(b)

Short-term employees benefits

ESGL Holdings Limited

Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022

2. Significant accounting policies (continued)

2.15 Currency translation

All foreign exchange gains and losses impacting profit or loss are presented in statement of comprehensive income within “Other operating expenses”.

2.16 Cash and cash equivalents

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.

2.18 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;

(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.

2.19 Fair value measurement

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

ESGL Holdings Limited

Notes to the Consolidated Financial Statements for Financial Years ended December 31, 2023 and 2022

2. Significant accounting policies (continued)

2.20 Application of amendments to IFRS

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

Intangible assets, net

12 Months Ended

Dec. 31, 2023

Notes and other explanatory information [abstract]

Intangible assets, net

11. Intangible assets, net

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

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

Schedule of financial instruments (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Financial Risk Management
Financial assets, at amortised cost	$ 874,477	$ 480,318
Financial liabilities, at amortised cost	$ 15,150,956	$ 9,529,631

Schedule of Income Tax Rates to Profit or Loss Before Income Tax Expense (Details) (Paranthetical)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Tax Expense
Applicable tax rate	17.00%	17.00%

Schedule of depreciation charge (Details) - USD ($)	12 Months Ended
Schedule of depreciation charge (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
IfrsStatementLineItems [Line Items]
Depreciation charge	$ 257,222	$ 218,386
Land and buildings [member]
IfrsStatementLineItems [Line Items]
Depreciation charge	208,860	175,287
Plant and equipment [member]
IfrsStatementLineItems [Line Items]
Depreciation charge	7,882	7,882
Motor vehicles [member]
IfrsStatementLineItems [Line Items]
Depreciation charge	$ 40,480	$ 35,217

Other income (Tables)

12 Months Ended

Dec. 31, 2023

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 AEPW¹		72,000		116,000
Warehousing and logistic services		36,357		175,650
Others		335		1,545
Other income		169,819		396,373