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Gains or losses arising from the retirement or disposal use or sale of output manufactured during the
of an intangible asset are determined as the difference project;
between the net disposal proceeds and the carrying ʀ a potential market for the products created during
amount of the asset and recognised as income or the project exists or their usefulness, in case of
expense in the Statement of Profit and Loss.
internal use, is demonstrated, such that the project
2.7 Capital work-in-progress (‘CWIP’) and intangible will generate probable future economic benefits;
assets under development and
Projects under commissioning and other CWIP/ ʀ adequate resources are available to complete the
intangible assets under development are carried project.
at cost, comprising direct cost, related incidental These development costs are amortised over the
expenses and attributable borrowing cost. estimated useful life of the projects or the products
Subsequent expenditures relating to property, plant they are incorporated within. The amortisation of
and equipment are capitalised only when it is probable capitalised development costs begins as soon as the
that future economic benefit associated with these related product is released to production. Integrated Report
will flow to the Company and the cost of the item can 2.10 Non-current assets held for sale and discontinued
be measured reliably. operations
2.8 Investment property Non-current assets (including disposal groups) are
Investment properties are land and buildings that classified as held for sale if their carrying amount will
are held for long term lease rental yields and/or be recovered principally through a sale transaction
for capital appreciation. Investment properties are rather than through continuing use and a sale is
initially recognised at cost including transaction costs. considered highly probable.
Subsequently investment properties comprising Non-current assets classified as held for sale are
buildings are carried at cost less accumulated measured at lower of their carrying amount and fair
depreciation and accumulated impairment losses, if value less cost to sell.
any.
Non-current assets classified as held for sale are not
Depreciation on buildings is provided over the depreciated or amortised from the date when they are
estimated useful lives as specified in note 2.5 above. classified as held for sale.
The residual values, estimated useful lives and Statutory Reports
depreciation method of investment properties are Non-current assets classified as held for sale and the
reviewed, and adjusted on prospective basis as assets and liabilities of a disposal group classified as
appropriate, at each reporting date. The effects of any held for sale are presented separately from the other
assets and liabilities in the Balance Sheet.
revision are included in the Statement of Profit and
Loss when the changes arise. A discontinued operation is a component of the entity
that has been disposed of or is classified as held for
An investment property is de-recognised when either
the investment property has been disposed of or do sale and:
not meet the criteria of investment property i.e. when ʀ represents a separate major line of business or
the investment property is permanently withdrawn geographical area of operations and;
from use and no future economic benefit is expected ʀ is part of a single co-ordinated plan to dispose of
from its disposal. The difference between the net such a line of business or area of operations.
disposal proceeds and the carrying amount of the
asset is recognised in the Statement of Profit and Loss The results of discontinued operations are presented
separately in the Statement of Profit and Loss.
in the period of de-recognition.
2.11 Financial instruments Financial Statements
2.9 Research and development expenses
Research expenses are charged to the Statement of 2.11.1 Investments and other financial assets:
Profit and Loss as expenses in the year in which they Classification
are incurred. Development costs are capitalised as
The Company classifies its financial assets in the
an intangible asset under development when the
following measurement categories:
following criteria are met:
ʀ those to be measured subsequently at fair value
ʀ the project is clearly defined, and the costs are (either through OCI, or through profit or loss), and
separately identified and reliably measured;
ʀ those measured at amortised cost.
ʀ the technical feasibility of the project is
demonstrated; The classification depends on the Company’s
business model for managing the financial assets and
ʀ the ability to use or sell the products created during the contractual terms of the cash flows. For assets
the project is demonstrated;
measured at fair value, gains and losses will either
ʀ the intention to complete the project exists and be recorded in the Statement of Profit and Loss or
Standalone Financial Statements 147