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Integrated Annual Report 2021-22
• Amortised cost management has elected to present fair value
Assets that are held for collection of gains and losses on equity investments in OCI, there
contractual cash flows, where those is no subsequent reclassification of fair value gains
cash flows represent solely payments and losses to the Consolidated Statement of Profit
of principal and interest, are measured and Loss. When the financial asset is derecognised,
at amortised cost. A gain or loss on a the cumulative gain or loss previously recognised
debt investment (unhedged) that is in OCI is reclassified to equity. Dividends from such
subsequently measured at amortised investments are recognised in the Consolidated
cost is recognised in the Consolidated Statement of Profit and Loss within other income
Statement of Profit and Loss when the when the Group’s right to receive payments is
asset is derecognised or impaired. Interest established. Impairment losses (and reversal
income from these financial assets is of impairment losses) on equity investments
included in other income using the measured at FVTOCI are not reported separately
effective interest rate (‘EIR’) method. from other changes in fair value.
Cash and cash equivalents
• Fair value through other comprehensive
income (‘FVTOCI’) The Group considers all highly liquid investments,
which are readily convertible into known amounts
Assets that are held for collection of of cash, that are subject to an insignificant risk
contractual cash flows and for selling of change in value with a maturity within three
the financial assets, where the asset’s months or less from the date of purchase, to be
cash flows represent solely payments cash equivalents. Cash and cash equivalents
of principal and interest, are measured consist of balances with banks which are
at FVTOCI. Movements in the carrying unrestricted for withdrawal and usage.
amount are recorded through OCI, except
for the recognition of impairment gains Derecognition of financial assets
or losses, interest revenue and foreign A financial asset is derecognised only when the
exchange gains and losses which are Group
recognised in the Consolidated Statement
of Profit and Loss. When the financial • has transferred the rights to receive cash
asset is derecognised, the cumulative flows from the financial asset; or
gain or loss previously recognised in • retains the contractual rights to receive
OCI is reclassified from equity to the the cash flows of the financial asset, but
Consolidated Statement of Profit and Loss. assumes a contractual obligation to pay
Interest income from these financial assets the cash flows to one or more recipients.
is included in other income using the EIR. Where the Group transfers an asset, it evaluates
whether it has transferred substantially all risks
• Fair value through profit or loss (‘FVTPL’)
and rewards of ownership of the financial asset.
Assets that do not meet the criteria for Where the Group has transferred substantially
amortised cost or FVTOCI are measured at all risks and rewards of ownership, the financial
FVTPL. A gain or loss on a debt investment asset is derecognised. Where the Group has not
(including current investments) that transferred substantially all risks and rewards of
is subsequently measured at FVTPL ownership of the financial asset, the financial
(unhedged) is recognised net in the asset is not derecognised. Where the Group has
Consolidated Statement of Profit and Loss neither transferred a financial asset nor retained
in the period in which it arises. Interest substantially all risks and rewards of ownership
income from these financial assets is of the financial asset, the financial asset is
included in other income. derecognised if the Group has not retained control
of the financial asset. Where the Group retains
Equity instruments control of the financial asset, the asset is continued
The Group subsequently measures all equity to be recognised to the extent of continuing
investments at fair value. Where the Group’s involvement in the financial asset.
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