Page 206 - Tata_Chemicals_yearly-reports-2017-18

ʀ a potential market for the products created during contractual terms of the cash flows. For assets
the project exists or their usefulness, in case of measured at fair value, gains and losses will either
internal use, is demonstrated, such that the project be recorded in the Consolidated Statement of
will generate probable future economic benefits; Profit and Loss or through OCI. For investments in
and debt instruments, this will depend on the business
model in which the investment is held. For
ʀ adequate resources are available to complete the
investments in equity instruments, this will depend
project.
on whether the Group has made an irrevocable
These development costs are amortised over the election at the time of initial recognition to account
estimated useful life of the projects or the products for the equity investment at fair value through OCI.
they are incorporated within. The amortisation of The Group has elected to consider the carrying
capitalised development costs begins as soon as the cost of equity investments in joint venture at cost.
related product is released to production.
The Group reclassifies debt investments when and
2.14 Non-current assets held for sale and discontinued only when its business model for managing those
operations assets changes.
Non-current assets (including disposal groups) are Debt instruments
classified as held for sale if their carrying amount will
Measurement
be recovered principally through a sale transaction
rather than through continuing use and a sale is At initial recognition, the Group measures a
considered highly probable. financial asset at its fair value (other than financial
asset at fair value through profit or loss). Transaction
Non-current assets classified as held for sale are
costs that are directly attributable to the acquisition
measured at lower of their carrying amount and fair
of the financial assets are added to the fair value
value less cost to sell.
measured on initial recognition. Transaction costs
Non-current assets classified as held for sale are not of financial assets carried at fair value through
depreciated or amortised from the date when they are profit or loss are expensed in the Consolidated
classified as held for sale. Statement of Profit and Loss.
Non-current assets classified as held for sale and the Subsequent measurement of debt instruments
assets and liabilities of a disposal group classified as depends on the Group’s business model
held for sale are presented separately from the other for managing the asset and the cash flow
assets and liabilities in the Consolidated Balance Sheet. characteristics of the asset. There are three
measurement categories into which the Group
A discontinued operation is a component of the entity
classifies its debt instruments:
that has been disposed of or is classified as held for
sale and: ʀ Amortised cost
ʀ represents a separate major line of business or Assets that are held for collection of contractual
geographical area of operations and; cash flows, where those cash flows represent solely
payments of principal and interest, are measured at
ʀ is part of a single co-ordinated plan to dispose of
amortised cost. A gain or loss on a debt investment
such a line of business or area of operations.
(unhedged) that is subsequently measured at
The results of discontinued operation are presented amortised cost is recognised in the Consolidated
separately in the Consolidated Statement of Profit and Statement of Profit and Loss when the asset is
Loss. derecognised or impaired. Interest income from
these financial assets is included in finance income
2.15 Financial instruments using the effective interest rate (‘EIR’) method.
2.15.1 Investments and other financial assets: ʀ Fair value through other comprehensive
Classification income (‘FVTOCI’)
The Group classifies its financial assets in the following Assets that are held for collection of contractual
measurement categories: cash flows and for selling the financial assets,
where the asset’s cash flows represent solely
ʀ those to be measured subsequently at fair value payments of principal and interest, are measured
(either through OCI, or through profit or loss), and at FVTOCI. Movements in the carrying amount are
recorded through OCI, except for the recognition
ʀ those measured at amortised cost.
of impairment gains or losses, interest revenue
The classification depends on the Group’s business and foreign exchange gains and losses which are
model for managing the financial assets and the recognised in the Consolidated Statement of Profit

204 Annual Report 2017-18