Page 235 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Report Statutory Reports Financial Statements
1-59 60-146 Consolidated
II The results of subsidiaries acquired or 2.6
disposed of during the year are included
in the CFS from the effective date of
acquisition and up to the effective date of
disposal, as appropriate.
III The CFS include the share of profit / loss of
the joint ventures which are accounted as
per the ‘equity method’.
Under the equity method of accounting,
the investments are initially recognised at
cost and adjusted thereafter to recognise
the Group’s share of the post-acquisition
profits or losses of the investee in profit or
loss, and the Group’s share of movements
in OCI of the investee in OCI. Dividends
received or receivable from joint ventures
are recognised as a reduction in the
carrying amount of the investment.
When the Group’s share of losses in an
equity accounted investment equals
or exceeds its interest in the entity, the
Group does not recognise further losses,
unless it has incurred obligations or made
payments on behalf of the other entity.
IV The CFS are presented, to the extent
applicable, in accordance with the
requirements of Schedule III of the 2013
Act as applicable to the Company's
separate Financial Statements. (ii) Foreign operations
V Non-controlling interests (‘NCI’) in the
net assets of the subsidiaries that are
consolidated consists of the amount of
equity attributable to non-controlling
shareholders at the date of acquisition.
VI Goodwill on consolidation is measured as
the excess of the sum of the consideration
transferred, the amount of NCI in the
aquiree, and the fair value of acquirer’s
previously held equity instrument in the
aquiree (if any) over the net of acquisition
date fair value of identifiable assets
acquired and liabilities assumed.
Profit or loss and each component of OCI
are attributed to the equity holders of the
parent and to the NCI, even if this results in
the NCI having a deficit balance.
Foreign currency translation
(i) Foreign currency transactions and
balances
On initial recognition, all foreign currency
transactions are recorded at exchange
rates prevailing on the date of the
transaction. Monetary assets and liabilities,
denominated in a foreign currency, are
translated at the exchange rate prevailing
on the Consolidated Balance Sheet date
and the resultant exchange gains or
losses are recognised in the Consolidated
Statement of Profit and Loss. Non-
monetary items, which are carried in terms
of historical cost, denominated in a foreign
currency are reported using the exchange
rate at the date of the transaction.
Foreign exchange differences regarded as
an adjustment to the borrowing cost are
presented in the Consolidated Statement
of Profit and Loss within finance cost.
Exchange differences arising from the
translation of equity investments at Fair
value through other comprehensive
income (‘FVTOCI’) are recognised in OCI.
All other foreign exchange gains and
losses are presented on a net basis within
other income or other expense.
Assets and liabilities of entities with
functional currencies other than
presentation currency have been
translated to the presentation currency
using exchange rates prevailing on the
Consolidated Balance Sheet date. The
Statement of Profit and Loss has been
translated using the average exchange
rates. The net impact of such translation
are recognised in OCI and held in foreign
currency translation reserve (‘FCTR’), a
component of Equity.
On the disposal of a foreign operation (i.e.
a disposal of the Group’s entire interest in a
foreign operation, a disposal involving loss
of control, over a subsidiary that includes
a foreign operation, or a partial disposal
of an interest in a joint arrangement
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