Page 263 - Tata_Chemicals_yearly-reports-2019-20

Integrated report Statutory reportS Financial StatementS
Consolidated

employees. these subsidiaries match employee 2.22 Employee separation compensation
contributions up to certain predefined limits for Compensation paid / payable to employees who have
non-represented employees based upon eligible opted for retirement under a Voluntary retirement
compensation and the employee’s contribution Scheme including ex-gratia is charged to the Consolidated
rate. Contributions are charged as expense as they Statement of profit and loss in the year of separation.
fall due.
2.23 Borrowing costs
For the uK and Kenyan subsidiaries, the
contributions payable during the period under Borrowing costs are interest and ancillary costs incurred in
defined contribution schemes are charged to the connection with the arrangement of borrowings. general
Consolidated Statement of profit and loss. and specific borrowing costs attributable to acquisition
and construction of qualifying assets is added to the cost of
(ii) Defined benefit plans the assets upto the date the asset is ready for its intended
use. Capitalisation of borrowing costs is suspended and
the uSa subsidiaries use standard actuarial
methods and assumptions to account for pension charged to the Consolidated Statement of profit and
and other post retirement benefit plans. pension loss during extended periods when active development
and post retirement benefit obligations are activity on the qualifying assets is interrupted. all other
actuarially calculated using best estimates of borrowing costs are recognised in the Consolidated
the rate used to discount the future estimated Statement of profit and loss in the period in which they
liability, the long-term rate of return on plan are incurred.
assets, and several assumptions related to the
employee workforce (compensation increases, 2.24 Government grants
health care cost trend rates, expected service government grants and subsidies are recognised when
period, retirement age and mortality). pension there is reasonable assurance that the group will comply
and post retirement benefit expense includes with the conditions attached to them and the grants and
the actuarially computed cost of benefits earned subsidies will be received. government grants whose
during the current service period. actuarial gains primary condition is that the group should purchase,
and losses are recognised in oCI in the period in construct or otherwise acquire non-current assets are
which they occur. recognised as deferred revenue in the Consolidated
Balance Sheet and transferred to the Consolidated
For uK subsidiaries, the cost of providing pension Statement of profit and loss on systematic and rational
benefits is actuarially determined using the basis over the useful lives of the related asset.
projected unit credit method and discounted
at the current rate of return on a high quality 2.25 Segment reporting
corporate bond of equivalent term and currency
to the liability, with actuarial valuations being the operating segments are the segments for which
carried out at each Balance Sheet date. actuarial separate financial information is available and for which
gains and losses are recognised in oCI in the operating profit/loss amounts are evaluated regularly by
period in which they occur. the Managing director and Chief executive officer (who
is the group’s chief operating decision maker) in deciding
Changes in the present value of the defined benefit how to allocate resources and in assessing performance.
obligation resulting from plan amendments or
curtailments are recognised immediately in the the accounting policies adopted for segment reporting are
Consolidated Statement profit and loss as past in conformity with the accounting policies of the group.
service cost. Segment revenue, segment expenses, segment assets and
segment liabilities have been identified to segments on
2.21 Termination benefits the basis of their relationship to the operating activities of
termination benefits are expensed at the earlier of the segment. Inter segment revenue is accounted on the
when the group can no longer withdraw the offer of basis of transactions which are primarily determined based
those benefits and when the group recognises cost for on market / fair value factors. revenue, expenses, assets
restructuring. and liabilities which relate to the group as a whole and

261