Page 256 - Tata_Chemicals_yearly-reports-2019-20

at the date of acquisition. Following initial recognition, investment properties comprising building are carried
intangible assets are carried at cost less accumulated at cost less accumulated depreciation and accumulated
amortisation and accumulated impairment losses, if any. impairment losses, if any.
the intangible assets with a finite useful life are amortised depreciation on buildings is provided over the estimated
using straight line method over their estimated useful useful lives as specified in note 2.9 above. the residual
lives. the management’s estimates of the useful lives for values, estimated useful lives and depreciation method
various class of intangibles are as given below: of investment properties are reviewed, and adjusted on
prospective basis as appropriate, at each reporting date.
Asset Useful life the effects of any revision are included in the Consolidated
Mining rights** 140 years Statement of profit and loss when the changes arise.
Computer software 3-8 years
an investment property is de-recognised when either
product registration, contractual rights and 4-20 years the investment property has been disposed of or does
rights to use railway wagons
not meet the criteria of investment property i.e. when
technical knowhow 3 years the investment property is permanently withdrawn from
**Mining rights which are in relation to the uSa subsidiaries use and no future economic benefit is expected from its
mine are amortised using the units-of-production method. disposal. the difference between the net disposal proceeds
approximately 99% (previous year 99%) of mining rights and the carrying amount of the asset is recognised in the
are amortised using the units-of-production method. Consolidated Statement of profit and loss in the period of
de-recognition.
the estimated useful life is reviewed annually by the
management. 2.13 Research and Development Expenses
losses arising from the retirement or disposal of an research expenses are charged to the Consolidated
intangible asset are determined as the difference between Statement of profit and loss as expenses in the year in
the net disposal proceeds and the carrying amount of which they are incurred. development costs are capitalised
the asset and recognised as income or expense in the as an intangible asset under development when the
Consolidated Statement of profit and loss. following criteria are met:

2.11 Capital work-in-progress (‘CWIP’) and intangible • the project is clearly defined, and the costs are
assets under development separately identified and reliably measured;
projects under commissioning and other CWIp/ intangible • the technical feasibility of the project is demonstrated;
assets under development are carried at cost, comprising
direct cost, related incidental expenses and attributable • the ability to use or sell the products created during
borrowing cost. the project is demonstrated;

Subsequent expenditures relating to property, plant and • the intention to complete the project exists and use or
equipment are capitalised only when it is probable that sale of output manufactured during the project;
future economic benefit associated with these will flow • a potential market for the products created during the
to the group and the cost of the item can be measured project exists or their usefulness, in case of internal use,
reliably.
is demonstrated, such that the project will generate
probable future economic benefits; and
advances given to acquire property, plant and equipment
are recorded as non-current assets and subsequently • adequate resources are available to complete the
transferred to CWIp on acquisition of related assets.
project.
2.12 Investment property these development costs are amortised over the
Investment properties are land and buildings that are estimated useful life of the projects or the products they
held for long term lease rental yields and/ or for capital are incorporated within. the amortisation of capitalised
appreciation. Investment properties are initially recognised development costs begins as soon as the related product
at cost including transaction costs. Subsequently is released to production.

254 I Integrated annual report 2019-20