Page 202 - Tata_Chemicals_yearly-reports-2021-22

Integrated Annual Report 2021-22

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permanently withdrawn from use and no future Non-current assets classified as held for sale are measured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

200