Page 291 - Tata Chemical Annual Report_2022-2023

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

disposal of an entity include the carrying amount of with these will flow to the Group and the cost of the • the intention to complete the project exists 2.15 Financial instruments
Goodwill relating to the entity disposed. item can be measured reliably. and use or sale of output manufactured during 2.15.1 Investments and other financial assets:
the project;
Other Intangible assets Advances given to acquire property, plant and • a potential market for the products created Classification
Computer software, technical knowhow, product equipment are recorded as non-current assets and during the project exists or their usefulness, The Group classifies its financial assets in the following
registration, contractual rights, rights to use railway subsequently transferred to CWIP on acquisition of in case of internal use, is demonstrated, such measurement categories:
wagons and mining rights of similar nature are related assets. that the project will generate probable future • those to be measured subsequently at fair
initially recognised at cost. The intangible assets economic benefits; and value (either through OCI, or through profit or
acquired in a business combination are measured at 2.12 Investment property loss), and
their fair value as at the date of acquisition. Following Investment properties are land and buildings that are • adequate resources are available to complete
initial recognition, intangible assets are carried at held for long term lease rental yields and/ or for capital the project. • those measured at amortised cost.
cost less accumulated amortisation and accumulated appreciation. Investment properties are initially recognised The classification depends on the Group’s
impairment losses, if any. at cost including transaction costs. Subsequently investment These development costs are amortised over the business model for managing the financial assets
estimated useful life of the projects or the products
properties comprising building are carried at cost less and the contractual terms of the cash flows. For
The intangible assets with a finite useful life are accumulated depreciation and accumulated impairment they are incorporated within. The amortisation of assets measured at fair value, gains and losses
amortised using straight line method over their losses, if any. capitalised development costs begins as soon as the will either be recorded in the Consolidated
estimated useful lives. The management’s estimates related product is released to production. Statement of Profit and Loss or through OCI.
of the useful lives for various class of intangibles are Depreciation on buildings is provided over the 2.14 Non-current assets held for sale and For investments in debt instruments, this will
as given below: estimated useful lives as specified in note 2.9 discontinued operations depend on the business model in which the
Asset Useful life above. The residual values, estimated useful lives Non-current assets (including disposal Groups) are investment is held. For investments in equity
Mining rights** 140 years and depreciation method of investment properties classified as held for sale if their carrying amount will instruments, this will depend on whether the
are reviewed, and adjusted on prospective basis as Group has made an irrevocable election at the
Computer software 3-8 years be recovered principally through a sale transaction time of initial recognition to account for the
Product registration, contractual rights appropriate, at each reporting date. The effects of any rather than through continuing use and a sale is equity investment at fair value through OCI.
and rights to use railway wagons 4-20 years revision are included in the Consolidated Statement considered highly probable.
Technical knowhow 3 years of Profit and Loss when the changes arise. The Group reclassifies debt investments when
Non-current assets classified as held for sale are
**Mining rights which are in relation to the USA subsidiaries An investment property is de-recognised when either measured at lower of their carrying amount and fair and only when its business model for managing
mine are amortised using the units-of-production method. the investment property has been disposed of or does those assets changes.
Approximately 99% (previous year 99%) of mining rights are value less cost to sell.
amortised using the units-of-production method. not meet the criteria of investment property i.e. when Debt instruments
the investment property is permanently withdrawn Non-current assets classified as held for sale are not
The estimated useful life is reviewed annually by from use and no future economic benefit is expected depreciated or amortised from the date when they Measurement
the management. from its disposal. The difference between the net are classified as held for sale. A financial asset or financial liability is initially
disposal proceeds and the carrying amount of the measured at fair value plus, for an item not at fair
Gains or losses arising from the retirement or disposal asset is recognised in the Consolidated Statement of Non-current assets classified as held for sale and the value through profit and loss (FVTPL), transaction
of an intangible asset are determined as the difference Profit and Loss in the period of de-recognition. assets and liabilities of a disposal Group classified costs that are directly attributable to its acquisition
between the net disposal proceeds and the carrying as held for sale are presented separately from the or issue. Transaction costs of financial assets carried
amount of the asset and recognised as income or 2.13 Research and Development Expenses other assets and liabilities in the Consolidated at fair value through profit or loss are expensed in the
expense in the Consolidated Statement of Profit Research expenses are charged to the Consolidated Balance Sheet. Consolidated Statement of Profit and Loss.
and Loss.
Statement of Profit and Loss as expenses in the year A discontinued operation is a component of the entity Subsequent measurement of debt instruments
in which they are incurred. Development costs are
2.11 Capital work-in-progress (‘CWIP’) and that has been disposed off or is classified as held for depends on the Group’s business model for managing
intangible assets under development capitalised as an intangible asset under development sale and: the asset and the cash flow characteristics of the asset.
when the following criteria are met:
Projects under commissioning and other CWIP/ • represents a separate major line of business or There are three measurement categories into which
intangible assets under development are carried • the project is clearly defined, and the costs are geographical area of operations and; the Group classifies its debt instruments:
at cost, comprising direct cost, related incidental separately identified and reliably measured; • is part of a single co-ordinated plan to dispose
expenses and attributable borrowing cost. • Amortised cost
• the technical feasibility of the project of such a line of business or area of operations.
is demonstrated; Assets that are held for collection of contractual
Subsequent expenditures relating to property, The results of discontinued operation are presented cash flows, where those cash flows represent
plant and equipment are capitalised only when it is • the ability to use or sell the products created separately in the Consolidated Statement of Profit solely payments of principal and interest,
probable that future economic benefit associated during the project is demonstrated; and Loss. are measured at amortised cost. A gain or

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