Page 239 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Report Statutory Reports Financial Statements
1-59 60-146 Consolidated

2.13 Research and Development Expenses A discontinued operation is a component of the
Research expenses are charged to the Consolidated entity that has been disposed off or is classified as
Statement of Profit and Loss as expenses in the held for sale and:
year in which they are incurred. Development • represents a separate major line of business
costs are capitalised as an intangible asset under or geographical area of operations and;
development when the following criteria are met:
• is part of a single co-ordinated plan to
• the project is clearly defined, and the dispose of such a line of business or area
costs are separately identified and reliably of operations.
measured;
The results of discontinued operation are presented
• the technical feasibility of the project is
demonstrated; separately in the Consolidated Statement of Profit
and Loss.
• the ability to use or sell the products created
during the project is demonstrated; 2.15 Financial instruments
• the intention to complete the project exists 2.15.1 Investments and other financial assets:
and use or sale of output manufactured Classification
during the project; The Group classifies its financial assets in
• a potential market for the products the following measurement categories:
created during the project exists or • those to be measured
their usefulness, in case of internal use, subsequently at fair value (either
is demonstrated, such that the project through OCI, or through profit or
will generate probable future economic loss), and
benefits; and
• adequate resources are available to • those measured at amortised cost.
complete the project. The classification depends on the Group’s
These development costs are amortised over the business model for managing the financial
estimated useful life of the projects or the products assets and the contractual terms of the
they are incorporated within. The amortisation of cash flows. For assets measured at fair
capitalised development costs begins as soon as value, gains and losses will either be
the related product is released to production. recorded in the Consolidated Statement
of Profit and Loss or through OCI. For
2.14 Non-current assets held for sale and investments in debt instruments, this will
discontinued operations depend on the business model in which
Non-current assets (including disposal groups) are the investment is held. For investments
classified as held for sale if their carrying amount in equity instruments, this will depend
will be recovered principally through a sale on whether the Group has made an
transaction rather than through continuing use irrevocable election at the time of initial
and a sale is considered highly probable. recognition to account for the equity
investment at fair value through OCI. The
Non-current assets classified as held for sale are Group has elected to consider the carrying
measured at lower of their carrying amount and cost of equity investments in joint venture
fair value less cost to sell. at cost.
Non-current assets classified as held for sale are The Group reclassifies debt investments
not depreciated or amortised from the date when when and only when its business model
they are classified as held for sale. for managing those assets changes.
Non-current assets classified as held for sale Debt instruments
and the assets and liabilities of a disposal group Measurement
classified as held for sale are presented separately
from the other assets and liabilities in the A financial asset or financial liability is
Consolidated Balance Sheet. initially measured at fair value plus, for

237