Page 168 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Annual Report 2020-21
are reviewed, and adjusted on prospective basis as
appropriate, at each reporting date. The effects
of any revision are included in the Standalone
Statement of Profit and Loss when the changes
arise.
An investment property is de-recognised when
either the investment property has been disposed
of or do not meet the criteria of investment
property i.e. when the investment property is
permanently withdrawn from use and no future
economic benefit is expected from its disposal.
The difference between the net disposal proceeds
and the carrying amount of the asset is recognised
in the Standalone Statement of Profit and Loss in
the period of de-recognition.
2.9 Research and development expenses
Research expenses are charged to the Standalone
Statement of Profit and Loss as expenses in the
year in which they are incurred. Development
costs are capitalised as an intangible asset under
development when the following criteria are met:
• the project is clearly defined, and the
costs are separately identified and reliably
measured;
• the technical feasibility of the project is
demonstrated;
• the ability to use or sell the products created
during the project is demonstrated;
• the intention to complete the project exists
and use or sale of output manufactured
during the project; 2.11 Financial instruments
• a potential market for the products 2.11.1 Investments and other financial assets:
created during the project exists or
their usefulness, in case of internal use,
is demonstrated, such that the project
will generate probable future economic
benefits; and
• adequate resources are available to
complete the project.
These development costs are amortised over the
estimated useful life of the projects or the products
they are incorporated within. The amortisation of
capitalised development costs begins as soon as
the related product is released to production.
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2.10 Non-current assets held for sale and
discontinued operations
Non-current assets (including disposal groups) are
classified as held for sale if their carrying amount
will be recovered principally through a sale
transaction rather than through continuing use
and a sale is considered highly probable.
Non-current assets classified as held for sale are
measured at lower of their carrying amount and
fair value less cost to sell.
Non-current assets classified as held for sale are
not depreciated or amortised from the date when
they are classified as held for sale.
Non-current assets classified as held for sale
and the assets and liabilities of a disposal group
classified as held for sale are presented separately
from the other assets and liabilities in the
Standalone Balance Sheet.
A discontinued operation is a component of the
entity that has been disposed off or is classified as
held for sale and:
• represents a separate major line of business
or geographical area of operations and;
• is part of a single co-ordinated plan to
dispose of such a line of business or area
of operations.
The results of discontinued operations are
presented separately in the Standalone Statement
of Profit and Loss.
Classification
The Company classifies its financial assets in the
following measurement categories:
• those to be measured subsequently at
fair value (either through OCI, or through
profit or loss), and
• those measured at amortised cost.
• those measured at carrying cost for
equity instruments subsidiaries and joint
ventures.