Exhibit

Description

99.1

Unaudited Condensed Interim Consolidated Financial Statements dated November 12, 2018

99.2

Management’s Discussion and Analysis of Financial Condition and Results of Operations dated November 12, 2018

99.3

Form 52-109F2 – Certification of Interim Filings Full Certificate – Chief Executive Officer dated November 13, 2018

99.4

Form 52-109F2 – Certification of Interim Filings Full Certificate – Chief Financial Officer dated November 13, 2018

CRONOS GROUP INC.

(Registrant)

By:

/s/ Michael Gorenstein  

Name:

Michael Gorenstein

Title:

President and Chief Executive Officer

CRONOS GROUP INC.

Unaudited Condensed Interim Consolidated Financial Statements

For the Three and Nine Months Ended September 30, 2018 and September 30, 2017

(in thousands of Canadian dollars)

Cronos Group Inc.

Unaudited Condensed Interim Consolidated Financial Statements

For the three and nine months ended September 30, 2018 and September 30, 2017

Unaudited Condensed Interim Consolidated Statements of Financial Position

1

Unaudited Condensed Interim Consolidated Statements of Operations and Comprehensive Income (Loss)

2

Unaudited Condensed Interim Consolidated Statements of Changes in Equity

3

Unaudited Condensed Interim Consolidated Statements of Cash Flows

4

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

5

Cronos Group Inc.

Unaudited Condensed Interim Consolidated Statements of Financial Position

As at September 30, 2018 and December 31, 2017

(in thousands of CDN $)

Notes

As at

September 30,

2018

As at

December 31,

2017

Assets

Current assets

Cash

$

41,482

$

9,208

Accounts receivable

23(i)

3,278

1,140

Sales taxes receivable

9,953

3,114

Prepaids and other receivables

23(i)

10,246

790

Biological assets

6

5,632

3,722

Inventory

6

15,073

8,416

Loan receivable

7,23(i)

314

314

Total current assets

85,978

26,704

Advances to related corporations

8,23(i)

2,674

-

Investments in equity accounted investees

9

4,072

3,807

Other investments

10,23(iii)

994

1,347

Property, plant and equipment

11

127,595

56,172

Intangible assets

12

11,345

11,207

Goodwill

13

1,792

1,792

Total assets

$

234,450

$

101,029

Liabilities

Current liabilities

Accounts payable and other liabilities

23(ii)

$

3,066

$

7,878

Government remittances payable

739

-

Construction loan payable

15

5,724

-

Total current liabilities

9,529

7,878

Construction loan payable

15

-

5,367

Deferred income tax liability

22

2,656

1,416

Total liabilities

12,185

14,661

Shareholders' equity

Share capital

16(a)

225,549

83,559

Shares to be issued

16(b)

17

-

Warrants

17(a)

1,548

3,364

Stock options

17(b)

4,982

2,289

Accumulated deficit

(11,261

)

(3,724

)

Accumulated other comprehensive income

1,119

880

Total equity attributable to shareholders of Cronos

221,954

86,368

Non-controlling interests

14

311

-

Total shareholders' equity

222,265

86,368

Total liabilities and shareholders' equity

$

234,450

$

101,029

Commitments and contingencies

21

Subsequent events

26

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements

Approved on behalf of the Board of Directors:

"Michael Gorenstein"

"James Rudyk"

Director

Director

Cronos Group Inc.

Unaudited Condensed Interim Consolidated Statements of Operations and Comprehensive Income (Loss)

For the three and nine months ended September 30, 2018 and September 30, 2017

(in thousands of CDN $, except share and per share amounts)

Three Months Ended

September 30,

Nine Months Ended

September 30,

Notes

2018

2017

2018

2017

Revenue

18

$

3,760

$

1,314

$

10,099

$

2,471

Cost of sales before fair value adjustments

5,6

1,688

464

4,509

877

Gross profit before fair value adjustments

2,072

850

5,590

1,594

Fair value adjustments

Unrealized change in fair value of biological assets

5,6

(1,533

)

(2,478

)

(11,108

)

(5,179

)

Realized fair value adjustments on inventory sold in the period

5,6

1,511

1,324

6,330

2,612

Total fair value adjustments

(22

)

(1,154

)

(4,778

)

(2,567

)

Gross profit

2,094

2,004

10,368

4,161

Operating expenses

Sales and marketing

598

176

1,548

306

General and administrative

4,820

1,066

11,500

4,274

Share-based payments

17(b),20

1,223

539

2,947

1,170

Depreciation and amortization

11,12

330

255

938

684

Total operating expenses

6,971

2,036

16,933

6,434

Operating loss

(4,877

)

(32

)

(6,565

)

(2,273

)

Other income (expense)

Interest expense

(62

)

(22

)

(121

)

(159

)

Share of income (loss) from investment in associate

9

20

(53

)

64

363

Gain on other investments

10

-

1,128

221

2,399

Total other income (expense)

(42

)

1,053

164

2,603

Income (loss) before income taxes

(4,919

)

1,021

(6,401

)

330

Income tax expense (recovery)

22

2,352

(76

)

1,197

(98

)

Net income (loss)

$

(7,271

)

$

1,097

$

(7,598

)

$

428

Net income (loss) attributable to:

Cronos Group

(7,210

)

1,097

(7,537

)

428

Non-controlling interests

14

(61

)

-

(61

)

-

$

(7,271

)

$

1,097

$

(7,598

)

$

428

Other comprehensive income (loss)

Gain (loss) on revaluation and disposal of other investments, net of tax

10,22

233

(2

)

237

692

Foreign exchange gain on translation of foreign operations

2(c)

3

-

3

-

Total other comprehensive income (loss)

236

(2

)

240

692

Comprehensive income (loss)

$

(7,035

)

$

1,095

$

(7,358

)

$

1,120

Comprehensive income (loss) attributable to:

Cronos Group

(6,975

)

1,095

(7,298

)

1,120

Non-controlling interests

14

(60

)

-

(60

)

-

$

(7,035

)

$

1,095

$

(7,358

)

$

1,120

Net income (loss) per share

Basic and diluted

19

$

(0.04

)

$

0.01

$

(0.04

)

$

0.00

Weighted average number of outstanding shares

Basic

19

177,483,122

134,913,931

170,097,232

130,782,161

Diluted

19

177,483,122

143,592,860

170,097,232

139,461,090

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements

Cronos Group Inc.

Unaudited Condensed Interim Consolidated Statements of Changes in Equity

For the three and nine months ended September 30, 2018 and September 30, 2017

(in thousands of CDN $, except number of share amounts)

Notes

Number of

shares

Share capital

Shares to be

issued

Share-based reserve

Accumulated

deficit

Accumulated other comprehensive income

Non-controlling interests

Total

Warrants

Stock options

Balance at January 1, 2017

121,725,748

$

33,590

$

-

$

3,983

$

735

$

(6,215

)

$

1,584

$

-

$

33,677

Shares issued

16(a)

14,376,112

32,346

-

-

-

-

-

-

32,346

Share issuance costs

-

(1,350

)

-

-

-

-

-

-

(1,350

)

Vesting of options

17(b)

-

-

-

-

1,170

-

-

-

1,170

Options exercised

17(b)

478,746

752

-

-

(267

)

-

-

-

485

Warrants exercised

17(a)

6,072,096

2,152

-

(619

)

-

-

-

-

1,533

Shares to be issued

16(c)

-

-

76

-

-

-

-

-

76

Unrealized gains reclassified to net income

10

-

-

-

-

-

-

(1,537

)

-

(1,537

)

Net income

-

-

-

-

-

428

-

-

428

Other comprehensive income

10

-

-

-

-

-

-

692

-

692

Balance at September 30, 2017

142,652,702

$

67,490

$

76

$

3,364

$

1,638

$

(5,787

)

$

739

$

-

$

67,520

Balance at January 1, 2018

149,360,603

$

83,559

$

-

$

3,364

$

2,289

$

(3,724

)

$

880

$

-

$

86,368

Shares issued

16(a)

15,677,143

146,032

-

-

-

-

-

-

146,032

Share issuance costs

-

(9,479

)

-

-

-

-

-

-

(9,479

)

Vesting of options

17(b)

-

-

-

-

2,947

-

-

-

2,947

Options exercised

17(b)

366,638

721

-

-

(154

)

-

-

-

567

Warrants exercised

17(a)

13,114,336

4,616

-

(1,816

)

-

-

-

-

2,800

Shares to be issued

16(b)

-

-

17

-

-

-

-

-

17

Share appreciation rights

17(b)

181,726

100

-

-

(100

)

-

-

-

-

Non-controlling interests arising from Cronos Israel

14

-

-

-

-

-

-

-

371

371

Net loss

-

-

-

-

-

(7,537

)

-

(61

)

(7,598

)

Other comprehensive income

10,22,2(c)

-

-

-

-

-

-

239

1

240

Balance at September 30, 2018

178,700,446

$

225,549

$

17

$

1,548

$

4,982

$

(11,261

)

$

1,119

$

311

$

222,265

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements

Cronos Group Inc.

Unaudited Condensed Interim Consolidated Statements of Cash Flows

For the three and nine months ended September 30, 2018 and September 30, 2017

(in thousands of CDN $)

Three Months Ended

September 30,

Nine Months Ended

September 30,

Notes

2018

2017

2018

2017

Operating activities

Net income (loss)

$

(6,392

)

$

1,097

$

(6,719

)

$

428

Items not affecting cash:

Unrealized change in fair value of biological assets

5,6

(1,533

)

(2,478

)

(11,108

)

(5,179

)

Realized fair value adjustments on inventory sold in the period

5,6

1,511

1,324

6,330

2,612

Share-based payments

17(b),20

1,223

539

2,947

1,170

Depreciation and amortization

11,12

645

255

1,760

684

Share of income (loss) from investment in associate

9

(20

)

53

(64

)

(363

)

Gain on other investments

10

-

(1,128

)

(221

)

(2,399

)

Deferred income tax expense (recovery)

22

1,473

(76

)

318

(98

)

Foreign exchange loss (gain)

2

-

(10

)

-

(3,091

)

(414

)

(6,767

)

(3,145

)

Net changes in non-cash working capital:

Accounts receivable

23(i)

(434

)

(102

)

(2,138

)

(293

)

Sales taxes receivable

(3,001

)

-

(6,839

)

-

Prepaids and other receivables

23(i)

(6,134

)

452

(9,456

)

(1,700

)

Biological assets

5,6

2,800

2,452

9,198

4,162

Inventory

5,6

(4,250

)

(3,408

)

(12,987

)

(5,502

)

Accrued interest on loan receivable

-

-

-

(5

)

Accounts payable and other liabilities

733

3,261

(5,017

)

3,470

Government remittances payable

739

-

739

-

Cash flows provided by (used in) operating activities

(12,638

)

2,241

(33,267

)

(3,013

)

Investing activities

Repayment of purchase price liability

-

(1,291

)

-

(2,590

)

Investments in equity accounted investees

9

(201

)

-

(201

)

(1,076

)

Investment in ABcann Global Corporation

10

-

-

-

(1,016

)

Proceeds from sale of other investments

10

-

3,383

967

5,154

Payment to exercise ABcann Global Corporation warrants

10

-

(2,268

)

(113

)

(2,268

)

Advances to related corporations

8

(2,674

)

-

(2,674

)

-

Cash assumed on acquisition of Cronos Israel

14

1,304

-

-

-

Purchase of property, plant and equipment

11

(34,229

)

(11,571

)

(71,896

)

(17,101

)

Purchase of intangible assets

12

(125

)

-

(294

)

-

Cash flows used in investing activities

(35,925

)

(11,747

)

(74,211

)

(18,897

)

Financing activities

Proceeds from exercise of warrants

17(a)

444

720

1,856

1,533

Proceeds received for shares to be issued

16(b)

-

-

961

76

Proceeds from exercise of options

17(b)

27

43

567

485

Proceeds from share issuance

16(a)

-

15,010

146,032

32,346

Share issuance costs

(35

)

(29

)

(9,479

)

(1,350

)

Increase in indebtedness

-

869

-

869

Proceeds from construction loan payable

15

-

5,022

-

5,022

Payment of accrued interest on construction loan

15

-

-

(185

)

-

Repayment of mortgage payable

-

-

-

(4,000

)

Cash flows provided by financing activities

436

21,635

139,752

34,981

Net change in cash

(48,127

)

12,129

32,274

13,071

Cash - beginning of period

89,609

4,406

9,208

3,464

Cash - end of period

$

41,482

$

16,535

$

41,482

$

16,535

Supplemental cash flow information

Interest paid

$

189

$

22

$

684

$

222

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements

1.

Nature of business

Cronos Group Inc. ("Cronos Group" or the "Company"), was incorporated under the Business Corporations Act (Ontario). Cronos Group is a publicly traded corporation, with its head office located at 720 King Street West, Suite 320, Toronto, Ontario, M5V 2T3. The Company's common shares are currently listed on the Toronto Stock Exchange ("TSX") and Nasdaq Global Market under the trading symbol "CRON".

Cronos Group is a geographically diversified and vertically integrated global cannabis company, with a presence across five continents, whose principal activities are the production and sale of cannabis in federally legal jurisdictions, including Canada and Germany. The Company operates two wholly-owned holders of licenses under the Cannabis Act (Canada) and its relevant regulations (collectively, the "Cannabis Act"), known as "License Holders". The Company's License Holders are Peace Naturals Project Inc. ("Peace Naturals"), which has production facilities near Stayner, Ontario, and Original BC Ltd. ("OGBC"), which has a production facility in Armstrong, British Columbia. Currently, Cronos Group sells dried cannabis and cannabis oils through wholesale and direct-to-consumer channels under our medical cannabis brand, PEACE NATURALS^TM, and recreational cannabis brands, COVE^TM and SPINACH^TM.

Cronos Group has also entered into six strategic joint ventures, including those in Colombia, Australia, and Israel, and holds minority interests in cannabis-related companies and License Holders. Two of these strategic joint ventures are considered subsidiaries for financial reporting purposes, refer to Note 2(a).

2.

Basis of presentation

The unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2018 and September 30, 2017, have been prepared in accordance with International Accounting Standard ("IAS") 34, Interim Financial Reporting. The accounting policies adopted in the preparation of the unaudited condensed interim consolidated financial statements are consistent with those followed in the preparation of the Company’s audited annual consolidated financial statements for the year ended December 31, 2017. The Company applied, as of January 1, 2018, International Financial Reporting Standard ("IFRS") 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments. As required by IAS 34, the nature and effect of these changes are disclosed in Note 3. The Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

The unaudited condensed interim consolidated financial statements do not conform in all respects to the requirements of IFRS as issued by the International Accounting Standards Board ("IASB") for annual financial statements. Accordingly, these unaudited condensed interim consolidated financial statements should be read in conjunction with the December 31, 2017 audited consolidated financial statements and notes.

These unaudited condensed interim consolidated financial statements were approved by the Board of Directors (the "Board") of Cronos Group on November 12, 2018.

(a)

Basis of consolidation

These unaudited condensed interim consolidated financial statements include the accounts of Cronos Group and its subsidiaries, summarized in the following chart. All intercompany transactions, balances, revenues and expenses have been eliminated upon consolidation. The Company applies the acquisition method to account for business combinations. Acquisition related costs are expensed as incurred.

The Company's subsidiaries consolidated in these unaudited condensed interim consolidated financial statements are as follows:

Subsidiaries

Jurisdiction of incorporation

Incorporation (Formation) date

Ownership interest

Hortican Inc.

Canada

January 17, 2013

100%

Peace Naturals Project Inc.

Canada

November 21, 2012

100%

Original BC Ltd.

Canada

March 15, 2013

100%

Cronos Canada Holdings Inc.

Canada

March 13, 2018

100%

Cronos Indigenous Holdings Inc.

Canada

March 16, 2017

100%

Indigenous Roots Inc.

Canada

December 14, 2016

100%

Indigenous Roots Limited Partnership

Canada

April 19, 2017

50%

Cronos Global Holdings Inc.

Canada

April 25, 2017

100%

Cronos Group Celtic Holdings Ltd.

Ireland

February 6, 2018

100%

Cronos Israel G.S. Cultivations Ltd. (i)

Israel

February 4, 2018

70%

Cronos Israel G.S. Manufacturing Ltd. (i)

Israel

September 4, 2018

90%

Cronos Israel G.S. Store Ltd. (i)

Israel

June 28, 2018

90%

Cronos Israel G.S. Pharmacy Ltd. (i)

Israel

February 15, 2018

90%

⁽ⁱ⁾

Cronos Israel G.S. Cultivations Ltd., Cronos Israel G.S. Manufacturing Ltd., Cronos Israel G.S. Store Ltd., and Cronos Israel G.S. Pharmacy Ltd. are collectively referred to as "Cronos Israel".

(b)

Basis of measurement

Apart from certain assets and liabilities measured at fair value as required under certain IFRSs, the unaudited condensed interim consolidated financial statements have been presented and prepared on the basis of historical cost.

(c)

Functional and presentation currency

These unaudited condensed interim consolidated financial statements are presented in Canadian dollars, which is the functional currency of the Company and all of its subsidiaries, with the exception of Cronos Israel which has a functional currency of the Israeli Shekel.

The assets and liabilities of foreign operations are translated into Canadian dollars at period-end exchange rates. Income and expenses, and cash flows of foreign operations are translated into Canadian dollars using average exchange rates. Exchange differences resulting from translating foreign operations are recognized in other comprehensive income and accumulated in equity.

(d)

Estimates and critical judgments by management

The preparation of these unaudited condensed interim consolidated financial statements in conformity with IAS 34 requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates are reviewed periodically and adjustments are made as appropriate in the period they become known. Items for which actual results may differ materially from these estimates are described in the following section.

(i)

Warrants and options

Warrants and options are initially valued at fair value, based on the application of the Black-Scholes option pricing model. This pricing model requires management to make various assumptions and estimates which are susceptible to uncertainty, including the volatility of the share price, expected dividend yield, expected term of the warrant or option and expected risk-free interest rate.

(ii)

Useful lives and impairment of long-lived assets

Long-lived assets are defined as property, plant and equipment and intangible assets with finite lives. Depreciation and amortization are dependent upon estimates of useful lives and impairment is dependent upon estimates of recoverable amounts. These are determined through the exercise of judgment, and are dependent upon estimates that take into account factors such as economic and market conditions, frequency of use, anticipated changes in laws, and technological improvements.

(iii)

Impairment of cash-generating units and goodwill

The impairment test for cash generating units ("CGUs") to which goodwill is allocated is based on the value in use of the CGU, determined in accordance with the expected cash flow approach. The calculation is based on assumptions used to estimate future cash flows, the cash flow growth rate and the discount rate.

(iv)

Income taxes

Income taxes and tax exposures recognized in these unaudited condensed interim consolidated financial statements reflect management's best estimate of the outcome based on facts known at the reporting date. When the Company anticipates a future income tax payment based on its estimates, it recognizes a liability. The difference between the expected amount and the final tax outcome has an impact on current and deferred taxes when the Company becomes aware of this difference.

In addition, when the Company incurs losses for income tax purposes, it assesses the probability of taxable income being available in the future based on its budgeted forecasts. These forecasts are adjusted to take into account certain non-taxable income and expenses and specific rules on the use of unused credits and tax losses. When the forecasts indicate that sufficient future taxable income will be available to deduct the temporary differences, a deferred tax asset is recognized for all deductible temporary differences.

(v)

Biological assets and inventory

Biological assets, consisting of cannabis plants, are measured at fair value less costs to sell. At the point of harvest, the biological assets are transferred to inventory at fair value less costs to sell. As a result, critical estimates related to the valuation of biological assets are also applicable to inventory.

Determining the fair value less costs to sell requires the Company to make assumptions about the expected harvest yield from the cannabis plants, the value associated with each stage of the plants' growth cycle, estimated selling price, processing costs to convert harvested cannabis into finished goods, selling costs, and the equivalency factor to convert dry cannabis into cannabis oil. The Company's estimates are, by their nature, subject to change. Refer to Note 6.

3.

Adoption of new accounting pronouncements

(a)

Amendments to IFRS 2 Share-based payments

The amendments to IFRS 2 clarify how to account for certain types of share-based payment transactions. The amendments provide requirements on the accounting for the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments, share-based payment transactions with a net settlement feature for withholding tax obligations, and a modification to the terms and conditions of a share-based payment that changes the classification of the transaction from cash-settled to equity-settled. The effective date of these amendments was January 1, 2018. The Company has adopted these amendments as of the effective date and has assessed no significant changes as a result of the adoption of these amendments.

(b)

IFRS 15 Revenue from contracts with customers

IFRS 15 was issued by the IASB in May 2014 and specifies how and when revenue should be recognized based on a five-step model, which is applied to all contracts with customers. IFRS 15 became effective for annual periods beginning on or after January 1, 2018 with early adoption permitted. The Company has adopted this new standard as of its effective date using the full retrospective method of adoption, and has assessed no significant changes as a result of the adoption of this new standard.

Under IFRS 15, the revenue recognition model has changed from one based on the transfer of risks and rewards of ownership to the transfer of control. The Company’s contracts with customers for the sales of dried cannabis and cannabis oil include one performance obligation, a promise in a contract with a customer to transfer a good or service. As the transfer of risks and rewards generally coincides with the transfer of control at a point in time, upon shipment or delivery, depending on the contract, the timing and amount of revenue considering discounts, rebates, and variable consideration, recognized from this principal revenue stream has not changed as a result of the adoption of this new standard.

The following is the Company's revenue recognition policy in accordance with IFRS 15:

(i)

Revenue recognition

Revenue is recognized at the transaction price, which is the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. The Company's contracts with customers for the sales of dried cannabis and cannabis oil include one performance obligation. The Company has concluded that revenue from the sale of these products should be recognized at the point in time when control of the assets is transferred to the customer, which is on shipment or delivery, depending on the contract. For consumer sales, payment is due prior to transfer of control. For non-consumer sales, payment is due 60 days after transfer of control. For international sales, fixed consideration is due 30 days and variable consideration due maximum 120 days after transfer of control.

(c)

IFRS 9 Financial instruments

IFRS 9 addresses classification and measurement of financial assets and replaces the multiple category and measurement models in IAS 39 for debt instruments with a new mixed measurement model having only three categories: amortized cost, fair value through other comprehensive income, and fair value through profit or loss. IFRS 9 also replaces the models for measuring equity instruments and such instruments are either recognized at fair value through profit or loss or at fair value through other comprehensive income. The effective date of this standard was January 1, 2018. The Company has adopted this new standard as of its effective date on a retrospective basis with the exception of financial assets that were derecognized at the date of initial application, January 1, 2018. The 2017 comparatives were not restated. As a result of the new classification model and measurement requirements under IFRS 9, the Company has elected to classify the available-for-sale equity investments as fair value through other comprehensive income investments as they are not held for trading by the Company. Under this classification, there is no recycling of gains or losses from accumulated other comprehensive income to profit or loss. Due to the adoption of IFRS 9, during the nine months ended September 30, 2018, a net gain of approximately $294 on the disposal of investments classified as fair value through other comprehensive income was recorded in other comprehensive income rather than profit or loss during the period. The new classification and measurement of the Company's financial assets are as follows:

(i)

Equity instruments at fair value through other comprehensive income ("FVOCI")

This category only includes equity instruments, which the Company intends to hold for the foreseeable future and which the Company has irrevocably elected to so classify upon initial recognition or transition. The Company classified its quoted and unquoted equity instruments as equity instruments at FVOCI. Equity instruments in this category are subsequently measured at fair value with changes recognized in other comprehensive income, with no recycling of gains or losses to profit or loss upon derecognition. Dividend income is recognized in earnings. Equity instruments at FVOCI are not subject to an impairment assessment under IFRS 9.

(ii)

Amortized cost

This category includes financial assets that are held within a business model with the objective to hold the financial assets in order to collect contractual cash flows that meet the solely principal and interest ("SPPI") criterion. Financial assets classified in this category are measured at amortized cost using the effective interest method.

(iii)

Fair value through profit or loss

This category includes derivative instruments as well as quoted equity instruments which the Company has not irrevocably elected, at initial recognition or transition, to classify at FVOCI. This category would also include debt instruments whose cash flow characteristics fail the SPPI criterion or are not held within a business model whose objective is either to collect contractual cash flows, or to both collect contractual cash flows and sell. Financial assets in this category are recorded at fair value with changes recognized in profit or loss.

The assessment of the Company's business models was made as of the date of initial application, January 1, 2018, and then applied retrospectively to those financial assets that were not derecognized before January 1, 2018.

IAS 39

IFRS 9

Financial assets

Cash

Fair value through profit or loss

Fair value through profit or loss

Accounts receivable

Amortized cost

Amortized cost

Other receivables

Amortized cost

Amortized cost

Loan receivable

Amortized cost

Amortized cost

Advances to related corporations

Amortized cost

Amortized cost

Other investments

Available-for-sale

FVOCI

Financial liabilities

Accounts payable and other liabilities

Amortized cost

Amortized cost

Construction loan payable

Amortized cost

Amortized cost