Page 114 - CCL AR 2017 Final

Computer software and implementation costs that are directly associated with the computer and
computer controlled machines which cannot operate without the related specific software, are included
in the cost of respective assets. Software which is not an integral part of the related hardware is classified
as intangible assets.

Intangible assets are stated at cost less accumulated amortisation and impairment loss, if any. Intangible
assets are amortised on a straight-line method when assets are available for use. Amortisation is charged
from the month of the year in which addition / capitalization occurs while no amortisation is charged in
the month in which an asset is disposed off.

3.2 Investments

3.2.1 Joint Ventures
The Company has interest in joint ventures which are jointly controlled entities. The Company combines
its share and recognises its interest in the joint ventures using the equity method. Under equity method,
the investment in joint ventures is carried in the balance sheet at cost plus post acquisition changes in the
Company’s share of net assets of the joint ventures. Profit and loss account reflects the share of the results
of operations of joint ventures.

After application of the equity method, the Company determines whether it is necessary to recognise
an additional impairment loss on the Company’s investment in joint ventures. The Company determines
at each reporting date whether there is any objective evidence that the investment in joint ventures is
impaired. If this is the case the Company calculates the amount of impairment loss as the difference
between the recoverable amount of joint ventures and their carrying value and recognises the amount in
the profit and loss account.
Financial statements of joint ventures are prepared for same reporting period as that of the Company,
using consistent accounting policies in line with that of the Company.

3.2.2 Available-for-sale securities
These are non-derivative financial assets which are intended to be held for an indefinite period of time,
but may be sold in response to the need for liquidity or changes in interest rates.

These investments are initially measured at fair value plus transaction costs and subsequently measured at
fair value with unrealised gains or losses recognised as other comprehensive income in the available-for-
sale reserve until the investment is derecognised, at which time the cumulative gain or loss is recognised
in other income and removed from the available-for-sale reserve.

3.2.3 Designated through profit or loss

Financial assets that are acquired principally for the purpose of generating profit from short-term
fluctuation in prices are classified as ‘financial assets at fair value through profit or loss’ category.

These investments are initially recognized at fair value, relevant transaction costs are taken directly to
profit and loss account and subsequently measured at fair value. Net gains and losses arising on changes
in fair value of these financial assets are taken to the profit and loss account in the period in which they
arise.

3.3 Stores, spare parts and loose tools
These are valued at lower of weighted average cost and estimated net realizable value (NRV) except
items-in-transit which are stated at invoice value plus other charges paid thereon upto the balance sheet
date.

Provision / write-off, if required, is made in the financial statements for slow moving, obsolete and
unusable items to bring their carrying value down to NRV.

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