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prevailing on the date of the transaction. Monetary related costs are recognised in the Consolidated
assets and liabilities, denominated in a foreign Statement of Profit and Loss as incurred. The acquiree’s
currency, are translated at the exchange rate identifiable assets, liabilities and contingent liabilities
prevailing on the Consolidated Balance Sheet date that meet the condition for recognition are recognised
and the resultant exchange gains or losses are at their fair values at the acquisition date except
recognised in the Consolidated Statement of Profit deferred tax assets or liabilities, and assets or liabilities
and Loss. Non-monetary items, which are carried in related to employee benefit arrangements, which are
terms of historical cost, denominated in a foreign recognised and measured in accordance with Ind AS
currency are reported using the exchange rate at 12- Income taxes and Ind AS 19-Employee benefits,
the date of the transaction. respectively.
Foreign exchange differences regarded as an Goodwill is measured as the excess of the sum of the
adjustment to the borrowing cost are presented consideration transferred, the amount of NCI in the
in the Consolidated Statement of Profit and Loss aquiree, and the fair value of acquirer’s previously
within finance cost. Exchange differences arising held equity instrument in the aquiree (if any) over
from the translation of equity investments at Fair the net of acquisition date fair value of identifiable Integrated Report
value through other comprehensive income assets acquired and liabilities assumed. Where the fair
(‘FVTOCI’) are recognised in OCI. All other foreign value of identifiable assets and liabilities exceed the
exchange gains and losses are presented on a net cost of acquisition, after reassessing the fair values of
basis within other income or other expense. the net assets and contingent liabilities, the excess is
recognised as capital reserve.
(ii) Foreign operations
The interest of non-controlling shareholders is
Assets and liabilities of entities with functional
initially measured either at fair value or at the NCI’s
currencies other than presentation currency have
proportionate share of the acquiree’s identifiable net
been translated to the presentation currency using
assets. The choice of measurement basis is made on
exchange rates prevailing on the Consolidated
an acquisition-by-acquisition basis.
Balance Sheet date. The Statement of Profit
and Loss has been translated using the average When the consideration transferred by the Group in
exchange rates. The net impact of such translation a business combination includes assets or liabilities
are recognised in OCI and held in foreign currency resulting in a contingent consideration arrangement, Statutory Reports
translation reserve (‘FCTR’), a component of Equity. such contingent consideration, on the acquisition
date, is measured at fair value and included as a
On the disposal of a foreign operation (i.e. a
part of the consideration transferred in a business
disposal of the Group’s entire interest in a foreign
combination. Changes in the fair value of the
operation, a disposal involving loss of control, over
contingent consideration that qualify as measurement
a subsidiary that includes a foreign operation, or a
period adjustments, are adjusted retrospectively,
partial disposal of an interest in a joint arrangement
with corresponding adjustments against goodwill or
that includes a foreign operation of which the
capital reserve as the case may be.
retained interest becomes a financial asset), the
exchange differences accumulated in equity in Measurement period adjustments are adjustments
respect of that operation attributable to the owners that arise from additional information during the
of the Group are reclassified to the Consolidated ‘measurement period’ (which cannot exceed one
Statement of Profit and Loss as part of the gain or year from the acquisition date) about facts and
loss on disposal. circumstances that existed at the acquisition date.
In case of a partial disposal of interests in a The subsequent accounting for changes in the fair Financial Statements
subsidiary that includes a foreign operation that value of the contingent consideration that do not
does not result in the Group losing control over the qualify as the measurement period adjustments
subsidiary, the proportionate share of accumulated depends on how the contingent consideration is
exchange differences are re-attributed to NCI and classified. Contingent consideration that is classified
are not recognised in the Consolidated Statement as equity is not remeasured at subsequent reporting
of Profit and Loss. For all other partial disposal (i.e. dates and its subsequent settlement is accounted
partial disposals of joint arrangements that do not for within equity. Contingent consideration that is
result in the Group losing significant influence classified as an asset or a liability is remeasured at
or joint control), the proportionate share of the fair value at subsequent reporting dates with the
accumulated exchange differences is reclassified corresponding gain or loss being recognised in profit
to the Consolidated Statement of Profit and Loss. or loss.
2.7 Business combinations When a business combination is achieved in stages, the
Group’s previously held equity interest in the acquiree
The Group accounts for its business combinations
is remeasured to its acquisition-date fair value and the
under acquisition method of accounting. Acquisition
Consolidated Financial Statements 201