Page 254 - Tata_Chemicals_yearly-reports-2019-20

In case of a partial disposal of interests in a subsidiary period’ (which cannot exceed one year from the acquisition
that includes a foreign operation that does not result date) about facts and circumstances that existed at the
in the group losing control over the subsidiary, the acquisition date.
proportionate share of accumulated exchange differences
are re-attributed to nCI and are not recognised in the the subsequent accounting for changes in the fair value
Consolidated Statement of profit and loss. For all other of the contingent consideration that do not qualify as
partial disposal (i.e. partial disposals of joint arrangements the measurement period adjustments depends on how
that do not result in the group losing significant the contingent consideration is classified. Contingent
influence or joint control), the proportionate share of the consideration that is classified as equity is not remeasured
accumulated exchange differences is reclassified to the at subsequent reporting dates and its subsequent
Consolidated Statement of profit and loss. settlement is accounted for within equity. Contingent
consideration that is classified as an asset or a liability is
2.7 Business combinations remeasured at fair value at subsequent reporting dates
with the corresponding gain or loss being recognised in
the group accounts for its business combinations under Consolidated Statement of profit and loss.
acquisition method of accounting. acquisition related
costs are recognised in the Consolidated Statement of When a business combination is achieved in stages, the
profit and loss as incurred. the acquiree’s identifiable group’s previously held equity interest in the acquiree
assets, liabilities and contingent liabilities that meet the is remeasured to its acquisition-date fair value and the
condition for recognition are recognised at their fair resulting gain or loss, if any, is recognised in Consolidated
values at the acquisition date except deferred tax assets Statement of profit and loss. amounts arising from
or liabilities, and assets or liabilities related to employee interests in the acquiree prior to the acquisition date that
benefit arrangements, which are recognised and measured have previously been recognised in other comprehensive
in accordance with Ind aS 12- Income taxes and Ind aS income are reclassified to Consolidated Statement of profit
19-employee benefits, respectively. and loss where such treatment would be appropriate if
goodwill is measured as the excess of the sum of the that interest were disposed off.
consideration transferred, the amount of nCI in the
aquiree, and the fair value of acquirer’s previously held If the initial accounting for a business combination is
equity instrument in the aquiree (if any) over the net of incomplete by the end of the reporting period in which
acquisition date fair value of identifiable assets acquired the combination occurs, the group reports provisional
and liabilities assumed. Where the fair value of identifiable amount for the items for which the accounting is
assets and liabilities exceed the cost of acquisition, after incomplete. those provisional amount are adjusted during
reassessing the fair values of the net assets and contingent the measurement period, or additional assets or liabilities
liabilities, the excess is recognised as capital reserve. are recognised, to reflect new information obtained about
facts and circumstances that existed at the acquisition
the interest of non-controlling shareholders is initially date that, if known, would have affected the amount
measured either at fair value or at the nCI’s proportionate recognised at that date.
share of the acquiree’s identifiable net assets. the choice
of measurement basis is made on an acquisition-by- 2.8 Changes in the proportion held by NCI
acquisition basis.
Changes in the proportion of the equity held by nCI are
When the consideration transferred by the group in accounted for as equity transactions. the carrying amount
a business combination includes assets or liabilities of the controlling interests and nCI are adjusted to reflect
resulting in a contingent consideration arrangement, the changes in their relative interests in the subsidiaries.
such contingent consideration, on the acquisition date, any difference between the amount by which the nCI are
is measured at fair value and included as a part of the adjusted and the fair value of the consideration paid or
consideration transferred in a business combination. received is recognised directly in equity and attributed to
Changes in the fair value of the contingent consideration owners of the group.
that qualify as measurement period adjustments, are
adjusted retrospectively, with corresponding adjustments 2.9 Property, plant and equipment
against goodwill or capital reserve as the case may be. an item of property, plant and equipment (‘ppe’) is
Measurement period adjustments are adjustments that recognised as an asset if it is probable that the future
arise from additional information during the ‘measurement economic benefits associated with the item will flow to

252 I Integrated annual report 2019-20