Page 275 - Tata_Chemicals_yearly-reports-2021-22

01 INTEGRATED 73 STATUTORY 178 FINANCIAL
REPORT
REPORTS
STATEMENTS
Consolidated
• the ability to use or sell the products created
during the project is demonstrated; 2.15.1 Investments and other financial assets:
• the intention to complete the project exists
and use or sale of output manufactured
during the project;
• a potential market for the products
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.
2.14 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
Consolidated 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 operation are presented
separately in the Consolidated Statement of Profit
and Loss.
2.15 Financial instruments
Classification
The Group 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.
The classification depends on the Group’s
business model for managing the financial
assets and the contractual terms of the
cash flows. For assets measured at fair
value, gains and losses will either be
recorded in the Consolidated Statement
of Profit and Loss or through OCI. For
investments in debt instruments, this will
depend on the business model in which
the investment is held. For investments
in equity instruments, this will depend
on whether the Group has made an
irrevocable election at the time of initial
recognition to account for the equity
investment at fair value through OCI. The
Group has elected to consider the carrying
cost of equity investments in joint venture
at cost.
The Group reclassifies debt investments
when and only when its business model
for managing those assets changes.
Debt instruments
Measurement
A financial asset or financial liability is
initially measured at fair value plus, for
an item not at fair value through profit
and loss (FVTPL), transaction costs that
are directly attributable to its acquisition
or issue. Transaction costs of financial
assets carried at fair value through profit
or loss are expensed in the Consolidated
Statement of Profit and Loss.
Subsequent measurement of debt
instruments depends on the Group’s
business model for managing the asset
and the cash flow characteristics of the
asset. There are three measurement
categories into which the Group classifies
its debt instruments:
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