Based on such assessment, it has concluded that Appendix A of Ind AS 11 is not applicable. In assessing the applicability, the Company have exercised judgment in relation to the provisions of the Electricity Act, 2003, transmission / distribution license and / or agreements etc. The Company has assessed applicability of Appendix A of Ind AS - 11 “Service Concession Arrangements” with respect to its distribution and transmission assets portfolio. Ministry of Environment Forest and Climate Change (MOEFCC) has made the emission norms for all thermal power plants significantly stringent which would increase the cost of compliance, which cost is expected to be pass through. The Company has substantially complied with the renewable power obligation, as prescribed by the regulatory authority and do not expect any implication, as in the past.ĪMGEN plant is using coal as a fuel. In terms of Part B of Schedule II of the Companies Act, 2013, the Company has followed the depreciation rates, depreciation method and residual value of the items of property, plant and equipment as notified by the respective regulators in accordance with the Electricity Act, 2003 with respect to the assets falling under regulated business.Ĭonsidering the historical experience and practical expediency, the Company has exercised its judgment on timing of settlement of security deposit collected from the customers and has accordingly classified the material portion of security deposit as non-current liability. (ii) Depreciation rates, depreciation method and residual value of property, plant and equipment As the Company had consistently elected not to recognize the regulatory deferral balances in its previous GAAP, the requirement of IND AS 114 does not apply to the Company. ![]() Ind AS - 114 “Regulatory Deferral Accounts” permits the Company to apply the requirements of this standard in its first Ind AS financial statements if and only if it conducts rate-regulated activities and recognized amounts that qualify as regulatory deferral account balances in its financial statements in accordance with its previous GAAP. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future period, if the revision affects current and future periods. ![]() Such estimates and associated assumptions are reviewed on an ongoing basis. Actual results may differ from these estimates. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. In the course of applying the policies outlined in all notes under note 4 above, the management of the Company are required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. NOTE 1: CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
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