Page 217 - Tata Chemical Annual Report_2022-2023

Integrated Annual Report 2022-23 01-83 84-192 193-365
Integrated Report Statutory Reports Financial Statements
Standalone

and/ or for capital appreciation. Investment is demonstrated, such that the project 2.11 Financial instruments Subsequent measurement of debt instruments
properties are initially recognised at cost will generate probable future economic 2.11.1 Investments and other financial assets: depends on the Company’s business model
including transaction costs. Subsequently benefits; and Classification for managing the asset and the cash flow
investment properties comprising buildings are characteristics of the asset. There are three
carried at cost less accumulated depreciation and • adequate resources are available to The Company classifies its financial assets measurement categories into which the
accumulated impairment losses, if any. complete the project. in the following measurement categories: Company classifies its debt instruments:

Depreciation on buildings is provided over the These development costs are amortised over • those to be measured • Amortised cost
estimated useful lives as specified in note 2.5 the estimated useful life of the projects or the subsequently at fair value (either Assets that are held for collection of
above. The residual values, estimated useful products they are incorporated within. The through OCI, or through profit or contractual cash flows, where those
lives and depreciation method of investment amortisation of capitalised development costs loss), and cash flows represent solely payments
properties are reviewed, and adjusted on begins as soon as the related product is released of principal and interest, are measured
prospective basis as appropriate, at each to production. • those measured at amortised cost. at amortised cost. A gain or loss on a
reporting date. The effects of any revision are debt investment (unhedged) that is
included in the Standalone Statement of Profit 2.10 Non-current assets held for sale and • those measured at carrying subsequently measured at amortised
and Loss when the changes arise. discontinued operations cost for equity instruments cost is recognised in the Standalone
Non-current assets (including disposal groups) subsidiaries and joint ventures. Statement of Profit and Loss when
An investment property is de-recognised are classified as held for sale if their carrying the asset is derecognised or impaired.
when either the investment property has been amount will be recovered principally through a The classification depends on the Interest income from these financial
disposed of or do not meet the criteria of sale transaction rather than through continuing Company’s business model for managing assets is included in other income using
investment property i.e. when the investment use and a sale is considered highly probable. the financial assets and the contractual the effective interest rate (‘EIR’) method.
property is permanently withdrawn from use and terms of the cash flows. For assets
no future economic benefit is expected from its Non-current assets classified as held for sale are measured at fair value, gains and losses • Fair value through Other Comprehensive
disposal. The difference between the net disposal measured at lower of their carrying amount and will either be recorded in the Standalone Income (‘FVTOCI’)
proceeds and the carrying amount of the asset is fair value less cost to sell. Statement of Profit and Loss or through Assets that are held for collection of
recognised in the Standalone Statement of Profit OCI. For investments in debt instruments, contractual cash flows and for selling
and Loss in the period of de-recognition. Non-current assets classified as held for sale this will depend on the business model
are not depreciated or amortised from the date in which the investment is held. For the financial assets, where the assets’
2.9 Research and development expenses when they are classified as held for sale. investments in equity instruments, this cash flows represent solely payments
will depend on whether the Company of principal and interest, are measured
Research expenses are charged to the Standalone has made an irrevocable election at the at FVTOCI. Movements in the carrying
Statement of Profit and Loss as expenses in the Non-current assets classified as held for sale time of initial recognition to account amount are recorded through OCI, except
year in which they are incurred. Development and the assets and liabilities of a disposal group for the equity investment at fair value for the recognition of impairment gains
costs are capitalised as an intangible asset under classified as held for sale are presented separately through OCI. or losses, interest revenue and foreign
development when the following criteria are met: from the other assets and liabilities in the
Standalone Balance Sheet. exchange gains or losses which are
• the project is clearly defined, and the The Company reclassifies debt recognised in the Standalone Statement
costs are separately identified and A discontinued operation is a component of the investments when and only when its of Profit and Loss. When the financial
reliably measured; entity that has been disposed off or is classified business model for managing those asset is derecognised, the cumulative
as held for sale and: assets changes. gain or loss previously recognised in
• the technical feasibility of the project OCI is reclassified from equity to the
is demonstrated; • represents a separate major line of Debt instruments Standalone Statement of Profit and Loss.
business or geographical area of Measurement Interest income from these financial
• the ability to use or sell the operations and; assets is included in other income using
products created during the project A financial asset or financial liability is the EIR method.
is demonstrated; • is part of a single co-ordinated plan to initially measured at fair value plus, for
dispose of such a line of business or area an item not at fair value through profit • Fair value through profit or loss (‘FVTPL’)
• the intention to complete the project and loss (FVTPL), transaction costs that
exists and use or sale of output of operations. are directly attributable to its acquisition Assets that do not meet the criteria for
manufactured during the project; or issue. Transaction costs of financial amortised cost or FVTOCI are measured at
The results of discontinued operations are assets carried at fair value through profit FVTPL. A gain or loss on a debt investment
• a potential market for the products presented separately in the Standalone or loss are expensed in the Standalone (including current investments) that
created during the project exists or Statement of Profit and Loss. Statement of Profit and Loss. is subsequently measured at FVTPL
their usefulness, in case of internal use, (unhedged) is recognised net in the

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