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Notes forming part of consolidated onancial statements (Contd.)
Annual Report 2016-17
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vii. Internally generated Intangible assets
During the year, the management continued to assess the recoverability of the Group’s internally generated
intangible assets including those under development. Based on the current revenue generated from these lines of
business, expected future revenue and the basis of amortization followed, the management considers the carrying
value of the these intangible assets as recoverable.
(b) Property, Plant and Equipment
Property, Plant and Equipment are stated at cost, less accumulated depreciation and accumulated impairment
losses, if any. The cost comprises the purchase price and directly attributable costs of bringing the asset to its
working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase
price. Capital work-in-progress includes cost of Property, Plant and Equipment that are not ready to be put to use.
Subsequent expenditure related to an item of Property, Plant and Equipment is added to its book value only if
it is probable that future economic beneots associated with the item will pow to the Group. All other expenses
on existing Property, Plant and Equipment, including day-to-day repair and maintenance expenditure and cost
of replacing parts, are charged to the statement of proot and loss for the year during which such expenses are
incurred.
Gains or losses arising from disposal of Property, Plant and Equipment are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognized in the statement of proot and loss
when the asset is disposed.
(c) Intangible assets
Intangible assets including software licenses of enduring nature and contractual rights acquired separately are
measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less
accumulated amortization and accumulated impairment losses, if any. Cost comprises the purchase price and any
directly attributable cost of bringing the asset to its working condition for its intended use.
Gains or losses arising from disposal of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognized in the statement of proot and loss when the
asset is disposed.
Research and development cost
Research costs are expensed as incurred. Development expenditure incurred on an individual project is recognized
as an intangible asset when the Group can demonstrate:
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technical feasibility of completing the intangible asset so that it will be available for use or sale
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its intention to complete the asset;
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its ability to use or sell the asset;
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how the asset will generate probable future economic beneots;
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the availability of adequate resources to complete the development and to use or sell the asset; and
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the ability to measure reliably the expenditure attributable to the intangible asset during development.
Such development expenditure, until capitalization, is repected as intangible assets under development.
Following the initial recognition, internally generated intangible assets are carried at cost less accumulated
amortization and accumulated impairment losses, if any. Amortization of internally generated intangible asset
begins when the development is complete and the asset is available for use.
(d) Business combinations
Business combinations are accounted for using the acquisition method under the provisions of Ind AS 103 - Business
Combinations.
The cost of an acquisition is measured at the fair value of the assets acquired and liabilities incurred or assumed on
the date of acquisition, which is the date on which control is transferred to the Group. The cost of acquisition also
includes the fair value of contingent consideration, if any. Identioable assets acquired and liabilities and contingent