NOTES TO FINANCIAL STATEMENTS 31 December 2025 2 SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION (cont’d) The amendments introduce a temporary exception to the accounting requirements for deferred taxes in FRS 12, so that an entity would neither recognise nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes. Following the amendments, the Group is required to disclose that it has applied the exception and to disclose separately its current tax expense (income) related to Pillar Two income taxes. Singapore has enacted the Multinational Enterprise (Minimum Tax) Act 2024 and published the related subsidiary legislations to implement the Global Anti-Base Erosion Model Rules (Pillar Two) relating to top-up tax under the Income Inclusion Rule (IIR) and to make provision for a domestic minimum top-up tax within the meaning of those Model Rules, which are effective for financial years starting on or after 1 January 2025. The Group neither recognises nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes. The Group has performed an assessment of the potential top-up tax impact from the enacted legislations. As of 31 December 2025, the Group’s revenue for the past financial year then ended and the preceding three financial years did not exceed Euro 750 million. Further, the Group did not have any subsidiaries with significant operations in countries where the corporate tax rate is less than 15%. Accordingly, top-up taxes, if any, is not expected to have a significant impact to the Group. FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION - The individual financial statements of each Group entity are measured and presented in the currency of the primary economic environment in which the entity operates (its functional currency). The consolidated financial statements of the Group and the statement of financial position of the Company are presented in United States dollars, which is not the functional currency of some entities within the Group. In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s functional currency are recorded at the rate of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at the end of the reporting period. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences arising on the settlement of monetary items, and on retranslation of monetary items are included in profit or loss for the period. Exchange differences arising on the retranslation of non-monetary items carried at fair value are included in profit or loss for the period except for differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognised in other comprehensive income. For such non-monetary items, any exchange component of that gain or loss is also recognised in other comprehensive income. For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations (including comparatives) are expressed in United States dollars using exchange rates prevailing at the end of the reporting period. Income and expense items (including comparatives) are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in a separate component of equity under the header of translation reserve. On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation), all of the accumulated exchange differences in respect of that operation attributable to the Group are reclassified to profit or loss. Any exchange differences that have previously been attributed to non-controlling interests are derecognised, but they are not reclassified to profit or loss. On consolidation, exchange differences arising from the translation of the net investment in foreign entities (including monetary items that, in substance, form part of the net investment in foreign entities), and of borrowings and other currency instruments designated as hedges of such investments, are recognised in other comprehensive income and accumulated in a separate component of equity under the header of translation reserve. Change of functional currency Effective from January 1, 2025, indirect subsidiaries of the Company, PT Golden Eagle Energy Tbk (“GEE”) together with its subsidiaries (“GEE Group”) changed their functional currency from Indonesia Rupiah to United States Dollar. This change was made following reassessment of the primary economic environment in which GEE and its subsidiaries each operates. GEE Group’s management concluded that the United States Dollar more appropriately reflects the economic substance of the underlying events and circumstances of the GEE Group’s operations. The key driver of the change being the offtake agreement entered into with a coal off-taker for the coal of TRA mine. Consequently, all balances as of 1 January 2025 were translated to USD at the exchange rate on that date. This change has been applied prospectively from 1 January 2025 in accordance with SFRS(I) 21. 73 GEO ENERGY | ANNUAL REPORT 2025
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