Page 271 - Tata_Chemicals_yearly-reports-2021-22

01 INTEGRATED 73 STATUTORY 178 FINANCIAL
STATEMENTS
REPORT
REPORTS
Consolidated
II The results of subsidiaries acquired or 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. (ii)
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.
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.
2.6 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.
Foreign operations
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
that includes a foreign operation of
which the retained interest becomes a
financial asset), the exchange differences
accumulated in equity in respect of that
operation attributable to the owners of the
Group are reclassified to the Consolidated
Statement of Profit and Loss as part of the
gain or loss on disposal.
In case of a partial disposal of interests
in a subsidiary that includes a foreign
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