Page 184 - Tata_Chemicals_yearly-reports-2019-20

Depreciation on buildings is provided over the 2.10 Non-current assets held for sale and
estimated useful lives as specified in note 2.5 discontinued operations
above. The residual values, estimated useful lives Non-current assets (including disposal groups) are
and depreciation method of investment properties classified as held for sale if their carrying amount
are reviewed, and adjusted on prospective basis as will be recovered principally through a sale
appropriate, at each reporting date. The effects of any transaction rather than through continuing use
revision are included in the Standalone Statement of and a sale is considered highly probable.
Profit and Loss when the changes arise.
Non-current assets classified as held for sale are
An investment property is de-recognised when measured at lower of their carrying amount and
either the investment property has been disposed fair value less cost to sell.
of or do not meet the criteria of investment
property i.e. when the investment property is Non-current assets classified as held for sale are
permanently withdrawn from use and no future not depreciated or amortised from the date when
economic benefit is expected from its disposal. they are classified as held for sale.
The difference between the net disposal proceeds
and the carrying amount of the asset is recognised Non-current assets classified as held for sale
in the Standalone Statement of Profit and Loss in and the assets and liabilities of a disposal group
the period of de-recognition. classified as held for sale are presented separately
from the other assets and liabilities in the
2.9 Research and development expenses Standalone Balance Sheet.
Research expenses are charged to the Standalone
Statement of Profit and Loss as expenses in the A discontinued operation is a component of the
year in which they are incurred. Development entity that has been disposed off or is classified as
costs are capitalised as an intangible asset under held for sale and:
development when the following criteria are met: • represents a separate major line of business or
geographical area of operations and;
• the project is clearly defined, and the costs are
separately identified and reliably measured;
• is part of a single co-ordinated plan to dispose
• the technical feasibility of the project is of such a line of business or area of operations.
demonstrated;
The results of discontinued operations are
• the ability to use or sell the products created presented separately in the Standalone Statement
during the project is demonstrated;
of Profit and Loss.
• the intention to complete the project exists
and use or sale of output manufactured during 2.11 Financial instruments
the project; 2.11.1 Investments and other financial assets:
• a potential market for the products created Classification
during the project exists or their usefulness, The Company classifies its financial assets in the
in case of internal use, is demonstrated, such following measurement categories:
that the project will generate probable future
economic benefits; and • those to be measured subsequently at fair
value (either through OCI, or through profit or
• adequate resources are available to complete loss), and
the project.
• those measured at amortised cost.
These development costs are amortised over the • those measured at carrying cost for equity
estimated useful life of the projects or the products instruments subsidiaries and joint ventures.
they are incorporated within. The amortisation of The classification depends on the Company’s
capitalised development costs begins as soon as business model for managing the financial
the related product is released to production.

182 I INTEGRATED ANNuAL REPORT 2019-20