TATA CONSULTANCY SERVICES LIMITED | ||||
Consolidated statement of financial position | ||||
Note | As at | As at | ||
March 31, 2024 | March 31, 2023 | |||
(In million of USD) | ||||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | 9(a) | 1,081 | 866 | |
Bank deposits | 456 | 392 | ||
Investments | 9(b) | 3,776 | 4,487 | |
Trade receivables | ||||
Billed | 9(c) | 5,328 | 4,992 | |
Unbilled | 1,096 | 1,083 | ||
Other financial assets | 9(d) | 320 | 405 | |
Income tax assets (net) | 18 | 1 | ||
Other assets | 11(d) | 1,475 | 1,185 | |
Total current assets | 13,550 | 13,411 | ||
Non-current assets | ||||
Bank deposits | 270 | 162 | ||
Investments | 9(b) | 34 | 32 | |
Trade receivables | ||||
Billed | 9(c) | 15 | 18 | |
Unbilled | 2 | 24 | ||
Other financial assets | 9(d) | 123 | 120 | |
Income tax assets (net) | 192 | 314 | ||
Deferred tax assets (net) | 15 | 405 | 399 | |
Property, plant and equipment | 11(a) | 1,346 | 1,410 | |
Right-of-use assets | 10 | 946 | 919 | |
Goodwill | 11(b) | 478 | 488 | |
Other intangible assets | 11(c) | 61 | 105 | |
Other assets | 11(d) | 394 | 326 | |
Total non-current assets | 4,266 | 4,317 | ||
TOTAL ASSETS | 17,816 | 17,728 | ||
LIABILITIES AND EQUITY | ||||
Liabilities | ||||
Current liabilities | ||||
Lease liabilities | 180 | 181 | ||
Trade payables | 1,197 | 1,278 | ||
Other financial liabilities | 9(e) | 1,003 | 1,103 | |
Unearned and deferred revenue | 437 | 467 | ||
Other liabilities | 11(e) | 782 | 595 | |
Provisions | 11(f) | 17 | 42 | |
Employee benefit obligations | 16 | 542 | 495 | |
Income tax liabilities (net) | 1,371 | 1,136 | ||
Total current liabilities | 5,529 | 5,297 | ||
Non-current liabilities | ||||
Lease liabilities | 781 | 754 | ||
Other financial liabilities | 9(e) | 44 | 44 | |
Employee benefit obligations | 16 | 82 | 66 | |
Deferred tax liabilities (net) | 15 | 117 | 96 | |
Unearned and deferred revenue | 58 | 122 | ||
Total non-current liabilities | 1,082 | 1,082 | ||
TOTAL LIABILITIES | 6,611 | 6,379 | ||
Equity | ||||
Share capital | 9(j) | 68 | 68 | |
Retained earnings | 13,980 | 14,536 | ||
Other equity | (2,944) | (3,352) | ||
Equity attributable to shareholders of the Company | 11,104 | 11,252 | ||
Non-controlling interests | 101 | 97 | ||
TOTAL EQUITY | 11,205 | 11,349 | ||
TOTAL LIABILITIES AND EQUITY | 17,816 | 17,728 | ||
See accompanying notes to consolidated financial statements | ||||
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TATA CONSULTANCY SERVICES LIMITED
Consolidated statement of profit or loss and other comprehensive income
Note | Year ended | Year ended | ||
March 31, 2024 | March 31, 2023 | |||
(In million of USD, except shares and | ||||
per share data) | ||||
Revenue | 12 | 29,080 | 27,927 | |
Cost of revenue | 17,335 | 16,884 | ||
Gross profit | 11,745 | 11,043 | ||
Operating expenses | ||||
Selling, general and administrative expenses | ||||
Settlement of legal claim | 19 | 115 | - | |
Others | 4,587 | 4,329 | ||
Total Selling, general and administrative expenses | 4,702 | 4,329 | ||
Operating profit | 7,043 | 6,714 | ||
Other income | ||||
Finance and other income | 14(a) | 462 | 406 | |
Finance costs | 14(b) | (94) | (96) | |
Other gains (net) | 14(c) | 73 | 22 | |
Other income (net) | 441 | 332 | ||
Profit before taxes | 7,484 | 7,046 | ||
Income tax expense | 15 | 1,919 | 1,808 | |
Profit for the year | 5,565 | 5,238 | ||
Other comprehensive income (OCI) | ||||
Items that will not be reclassified subsequently to profit or loss | ||||
Remeasurement of defined employee benefit plans | (2) | 34 | ||
Net change in fair value of investments in equity shares | (1) | - | ||
carried at fair value through OCI | ||||
Items that will be reclassified subsequently to profit or loss | ||||
Net change in fair value of investments other than | 24 | (57) | ||
equity shares carried at fair value through OCI | ||||
Net change in intrinsic value of derivatives designated as | - | (2) | ||
cash flow hedges | ||||
Net change in time value of derivatives designated as | 1 | 3 | ||
cash flow hedges | ||||
Exchange differences on translation of foreign operations | (159) | (902) | ||
and translation to presentation currency | ||||
Total other comprehensive income / (losses), net of tax | (137) | (924) | ||
Total comprehensive income for the year | 5,428 | 4,314 | ||
Profit for the year attributable to: | ||||
Shareholders of the Company | 5,542 | 5,219 | ||
Non-controlling interests | 23 | 19 | ||
5,565 | 5,238 | |||
Other comprehensive income for the year attributable to: | ||||
Shareholders of the Company | (128) | (917) | ||
Non-controlling interests | (9) | (7) | ||
(137) | (924) | |||
Total comprehensive income for the year attributable to: | ||||
Shareholders of the Company | 5,414 | 4,302 | ||
Non-controlling interests | 14 | 12 | ||
5,428 | 4,314 | |||
Earnings per share | ||||
Weighted average number of equity shares | 3,646,851,755 | 3,659,051,373 | ||
Basic and diluted earnings per share in USD | 17 | 1.52 | 1.43 |
See accompanying notes to consolidated financial statements
2
Balance as at April 1, 2023
Profit for the year
Other comprehensive income / (losses)
Total comprehensive income
Dividend
Buy-back of equity shares (Refer note 9 (j))
Tax on buy-back of equity shares (Refer note 9 (j)) Expenses for buy-back of equity shares (Refer note 9 (j))
Transfer to Special Economic Zone re-investment reserve
Transfer from Special Economic Zone re-investment reserve
Balance as at March 31, 2024
Balance as at April 1, 2022
Profit for the year
Other comprehensive income / (losses)
Total comprehensive income
Dividend
Purchase of non-controlling interests Transfer to Special Economic Zone re-investment reserve
Transfer from Special Economic Zone re-investment reserve
Balance as at March 31, 2023
*Amount less than $0.50 million.
TATA CONSULTANCY SERVICES LIMITED
Consolidated statement of changes in equity
Number | Share | Retained | Special | Foreign | Cash flow hedging | Investment | Equity | Non- | Total | |
of shares | capital | earnings | Economic Zone | currency | reserve | revaluation | attributable to | controlling | equity | |
re-investment | translation | Intrinsic | Time | reserve | shareholders of | interests | ||||
reserve | reserve | value | value | the Company | ||||||
(In million of USD, except share data) | ||||||||||
3,659,051,373 | 68 | 14,536 | 1,565 | (4,899) | (9) | (12) | 3 | 11,252 | 97 | 11,349 |
- | - | 5,542 | - | - | - | - | - | 5,542 | 23 | 5,565 |
- | - | (2) | - | (150) | - | 1 | 23 | (128) | (9) | (137) |
- | - | 5,540 | - | (150) | - | 1 | 23 | 5,414 | 14 | 5,428 |
- | - | (3,042) | - | - | - | - | - | (3,042) | (10) | (3,052) |
(40,963,855) | -* | (2,039) | - | - | - | - | - | (2,039) | - | (2,039) |
- | - | (475) | - | - | - | - | - | (475) | - | (475) |
- | - | (6) | - | - | - | - | - | (6) | - | (6) |
- | - | (1,192) | 1,192 | - | - | - | - | - | - | - |
- | - | 658 | (658) | - | - | - | - | - | - | - |
3,618,087,518 | 68 | 13,980 | 2,099 | (5,049) | (9) | (11) | 26 | 11,104 | 101 | 11,205 |
3,659,051,373 | 68 | 14,943 | 1,008 | (4,004) | (7) | (15) | 60 | 12,053 | 95 | 12,148 |
- | 5,219 | - | - | - | - | - | 5,219 | 19 | 5,238 | |
- | 34 | - | (895) | (2) | 3 | (57) | (917) | (7) | (924) | |
- | - | 5,253 | - | (895) | (2) | 3 | (57) | 4,302 | 12 | 4,314 |
- | - | (5,102) | - | - | - | - | - | (5,102) | (8) | (5,110) |
- | - | (1) | - | - | - | - | - | (1) | (2) | (3) |
- | - | (1,039) | 1,039 | - | - | - | - | - | - | - |
- | - | 482 | (482) | - | - | - | - | - | - | - |
3,659,051,373 | 68 | 14,536 | 1,565 | (4,899) | (9) | (12) | 3 | 11,252 | 97 | 11,349 |
See accompanying notes to consolidated financial statements
Loss of $2 million and gain of $34 million on remeasurement of defined employee benefit plans (net of tax) is recognised as a part of retained earnings for the years ended March 31, 2024 and 2023, respectively.
Retained earnings include statutory reserve of $28 million and $26 million as at March 31, 2024 and 2023, respectively.
Total equity (primarily retained earnings) includes $193 million and $195 million as at March 31, 2024 and 2023, respectively, pertaining to trusts and TCS Foundation held for specified purposes.
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TATA CONSULTANCY SERVICES LIMITED | ||
Consolidated statement of cash flows | ||
Year ended | Year ended | |
March 31, 2024 | March 31, 2023 | |
(In million of USD) | ||
Cash flows from operating activities | ||
Profit for the year | 5,565 | 5,238 |
Adjustments for: | ||
Depreciation and amortisation expense | 602 | 622 |
Bad debts and advances written off, allowance for expected credit losses and | 14 | 17 |
doubtful advances (net) | ||
Income tax expense | 1,919 | 1,808 |
Net gain on lease modification | (1) | - |
Unrealised foreign exchange gain | (2) | (23) |
Net gain on disposal of property, plant and equipment | - | (2) |
Net gain on disposal / fair valuation of investments | (4) | - |
Dividend reinvested | (2) | - |
Operating profit before working capital changes | 8,091 | 7,660 |
Net change in | ||
Trade receivables | ||
Billed | (402) | (805) |
Unbilled | (1) | (146) |
Other financial assets | (132) | 11 |
Other assets | (383) | (6) |
Trade payables | (76) | 252 |
Unearned and deferred revenue | (89) | 5 |
Other financial liabilities | (75) | 176 |
Other liabilities and provisions | 239 | (31) |
Cash generated from operations | 7,172 | 7,116 |
Taxes paid (net of refunds) | (1,510) | (1,606) |
Net cash generated from operating activities | 5,662 | 5,510 |
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TATA CONSULTANCY SERVICES LIMITED Consolidated statement of cash flows
Year ended
March 31, 2024
Year ended
March 31, 2023
(In million of USD) | |||
Cash flows from investing activities | |||
Bank deposits placed | (1,145) | (555) | |
Inter-corporate deposits placed | - | (1,044) | |
Purchase of investments* | (17,017) | (16,051) | |
Payment for purchase of property, plant and equipment | (266) | (314) | |
Payment including advances for acquiring right-of-use assets | (4) | (26) | |
Payment for purchase of intangible assets | (54) | (44) | |
Proceeds from bank deposits | 973 | 788 | |
Proceeds from inter-corporate deposits | 103 | 1,673 | |
Proceeds from disposal / redemption of investments* | 17,731 | 15,127 | |
Proceeds from disposal of property, plant and equipment | 1 | 5 | |
Proceeds from disposal of intangible assets | 1 | - | |
Net cash generated from / (used in) investing activities | 323 | (441) | |
Cash flows from financing activities | |||
Repayment of lease liabilities | (195) | (188) | |
Dividend paid | (3,042) | (5,102) | |
Dividend paid to non-controlling interests | (10) | (8) | |
Transfer of funds to buy-back escrow account | (51) | - | |
Transfer of funds from buy-back escrow account | 51 | 2 | |
Expenses for buy-back of equity shares (Refer note 9 (j)) | (6) | - | |
Tax on buy-back of equity shares (Refer note 9 (j)) | (475) | (553) | |
Buy-back of equity shares (Refer note 9 (j)) | (2,039) | - | |
Net cash used in financing activities | (5,767) | (5,849) | |
Net change in cash and cash equivalents | 218 | (780) | |
Cash and cash equivalents at the beginning of the year | 866 | 1,650 | |
Exchange difference on translation of foreign currency cash and cash equivalents | (3) | (4) | |
Cash and cash equivalents at the end of the year | 1,081 | 866 | |
Components of cash and cash equivalents | |||
Cash at banks and in hand | 336 | 258 | |
Bank deposits (original maturity less than three months) | 745 | 608 | |
1,081 | 866 | ||
Supplementary cash flow information | |||
Interest paid | 84 | 96 | |
Interest received | 361 | 381 | |
Dividend received | 3 | 2 |
See accompanying notes to consolidated financial statements
*Purchase of investments include $36 million and $20 million for years ended March 31, 2024 and 2023, respectively, and proceeds from disposal / redemption of investments include $20 million and $20 million for years ended March 31, 2024 and 2023, respectively, held by trusts and TCS Foundation held for specified purposes.
5
TATA CONSULTANCY SERVICES LIMITED
Notes to consolidated financial statements
1) Corporate information
Tata Consultancy Services Limited ("the Company") and its subsidiaries (collectively together with employee welfare trusts referred to as "the Group") provide IT services, consulting and business solutions and have been partnering with many of the world's largest businesses in their transformation journeys. The Group offers a consulting-led, cognitive powered, integrated portfolio of IT, business and engineering services and solutions. This is delivered through its unique Location- Independent Agile delivery model recognised as a benchmark of excellence in software development.
The Company is a public limited company incorporated and domiciled in India. The address of its corporate office is TCS House, Raveline Street, Fort, Mumbai - 400001. As at March 31, 2024, Tata Sons Private Limited, the holding company owned 71.74% of the Company's equity share capital.
The Board of Directors approved the consolidated financial statements for the year ended March 31, 2024 and authorised for issue on April 12, 2024.
2) Statement of compliance
These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).
-
Basis of preparation
These consolidated financial statements have been prepared on historical cost basis except for certain financial instruments and defined benefit plans which are measured at fair value or amortised cost at the end of each reporting period. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. All assets and liabilities have been classified as current and non-current as per the Group's normal operating cycle. Based on the nature of services rendered to customers and time elapsed between deployment of resources and the realisation in cash and cash equivalents of the consideration for such services rendered, the Group has considered an operating cycle of 12 months.
The statement of cash flows has been prepared under indirect method, whereby profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows. The Group classifies interest paid and interest and dividend received as cash flow from operating activities. The cash flows from operating, investing and financing activities of the Group are segregated. The Group considers all highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value to be cash equivalents.
The functional currency of the Company and its Indian subsidiaries is the Indian Rupee (`). The functional currency of foreign subsidiaries is the currency of the primary economic environment in which the entity operates. Foreign currency transactions are recorded at exchange rates prevailing on the date of the transaction. Foreign currency denominated monetary assets and liabilities are retranslated at the exchange rate prevailing on the dates of statement of financial position and exchange gains and losses arising on settlement and restatement are recognised in profit or loss. Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies are not retranslated.
The material accounting policy information used in preparation of the consolidated financial statements have been discussed in the respective notes. - Basis of consolidation
The Company consolidates all entities which are controlled by it.
6
TATA CONSULTANCY SERVICES LIMITED
Notes to consolidated financial statements
The Company establishes control when; it has power over the entity, is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect the entity's returns by using its power over relevant activities of the entity.
Entities controlled by the Company are consolidated from the date control commences until the date control ceases.
The results of subsidiaries acquired, or sold, during the year are consolidated from the effective date of acquisition and up to the effective date of disposal, as appropriate.
The financial statements of the Group companies are consolidated on a line-by-line basis and all inter-company transactions, balances, income and expenses are eliminated in full on consolidation.
Changes in the Company's interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions. The carrying amount of the Company's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to shareholders of the Company.
Assets and liabilities of entities with functional currency other than presentation currency have been translated to the presentation currency using exchange rates prevailing on the dates of statement of financial position. Statement of profit or loss and other comprehensive income of such entities has been translated using weighted average exchange rates. Translation adjustments have been reported as foreign currency translation reserve in the statement of changes in equity. When a foreign operation is disposed off in its entirety or partially such that control, significant influence or joint control is lost, the cumulative amount of exchange differences related to that foreign operation recognised in OCI is reclassified to profit or loss as part of the gain or loss on disposal.
These consolidated financial statements are presented in US Dollars ($) to facilitate the investors' ability to evaluate the Group's performance and financial position in comparison to similar companies domiciled in different foreign jurisdictions.
-
Use of estimates and judgements
The preparation of consolidated financial statements in conformity with the recognition and measurement principles of International Financial Reporting Standards (IFRS) requires management to make estimates and judgements that affect the reported balances of assets and liabilities, disclosures of contingent liabilities as at the date of consolidated financial statements and the reported amounts of income and expenses for the periods presented.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected.
The Group uses the following critical accounting judgements, estimates and assumptions in preparation of its consolidated financial statements:
(a) Revenue recognition
Revenue for fixed-price contracts is recognised using percentage-of-completion method. The Group estimates the future cost-to-completion of the contracts which is used to determine degree of completion of the performance obligation.
The Group exercises judgement for identification of performance obligations, determination of transaction price, ascribing the transaction price to each distinct performance obligation and in determining whether the performance obligation is satisfied at a point in time or over a period of time. These judgements have been explained in detail under the revenue note (Refer note 12).
7
TATA CONSULTANCY SERVICES LIMITED
Notes to consolidated financial statements
(b) Useful lives of property, plant and equipment
The Group reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods (Refer note 11 (a)).
(c) Impairment of goodwill
The Group estimates the value-in-use of the cash generating units (CGUs) based on the future cash flows after considering current economic conditions and trends, estimated future operating results and growth rate and anticipated future economic and regulatory conditions. The estimated cash flows are developed using internal forecasts. The discount rates used for the CGUs represent the weighted average cost of capital based on the historical market returns of comparable companies (Refer note 11 (b)).
(d) Fair value measurement of financial instruments
When the fair value of financial assets and financial liabilities recorded in the statement of financial position cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
(e) Impairment of financial assets (other than at fair value)
Measurement of impairment of financial assets require use of estimates, which have been explained in the note on financial assets, financial liabilities and equity instruments, under impairment of financial assets (other than at fair value) (Refer note 9).
(f) Provision for income tax and deferred tax assets
The Group uses judgements based on the relevant rulings in the areas of allocation of revenue, costs, allowances and disallowances which is exercised while determining the provision for income tax. A deferred tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilised. Accordingly, the Group exercises its judgement to reassess the carrying amount of deferred tax assets at the end of each reporting period.
(g) Provisions and contingent liabilities
The Group estimates the provisions that have present obligations as a result of past events and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates.
The Group uses significant judgements to assess contingent liabilities. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Group or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent assets are neither recognised nor disclosed in the consolidated financial statements.
(h) Employee benefits
The accounting of employee benefit plans in the nature of defined benefit requires the Group to use assumptions. These assumptions have been explained under employee benefits note (Refer note 16).
8
TATA CONSULTANCY SERVICES LIMITED
Notes to consolidated financial statements
(i) Leases
The Group evaluates if an arrangement qualifies to be a lease as per the requirements of IFRS 16. Identification of a lease requires significant judgement. The Group uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate.
The Group determines the lease term as the noncancellable period of a lease, together with both periods covered by an option to extend the lease if the Group is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Group is reasonably certain not to exercise that option. In assessing whether the Group is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Group to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Group revises the lease term if there is a change in the noncancellable period of a lease.
The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.
- Nature and purpose of reserves
-
Retained earnings
This reserve represents undistributed accumulated earnings of the Group as on the date of statement of financial position. - Special Economic Zone re-investment reserve
The Special Economic Zone (SEZ) re-investment reserve is created out of the profit of eligible SEZ units in terms of the provisions of section 10AA(1)(ii) of the Income-tax Act, 1961 of India. The reserve will be utilised by the Group for acquiring new assets for the purpose of its business as per the terms of section 10AA(2) of Income-tax Act, 1961 of India.
(c) Foreign currency translation reserve
The exchange differences arising from the translation of financial statements of foreign operations with functional currency other than presentation currency is recognised in other comprehensive income, net of taxes and is presented within equity in the foreign currency translation reserve.
(d) Cash flow hedging reserve
The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. Such gains or losses will be reclassified to profit or loss in the period in which the underlying hedged transaction occurs.
(e) Investment revaluation reserve
This reserve represents the cumulative gains and losses arising on the revaluation of equity and debt instruments on the date of statement of financial position measured at fair value through other comprehensive income. The reserves accumulated will be reclassified to retained earnings and profit or loss respectively, when such instruments are disposed.
-
Recent accounting standards
The Group has not applied the following new and revised IFRSs that have been issued but are not yet effective.
Amendments to IFRS 16 Lease Liability in a sale and Leaseback1 Amendments to IAS 1 Non-current Liabilities with Covenants1
9
TATA CONSULTANCY SERVICES LIMITED
Notes to consolidated financial statements
Amendments to IAS 1 Classification of Liabilities1
Amendments to IAS 7 and IFRS 7 Supplier Finance Arrangements1
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates2
IFRS 18 - Presentation and Disclosures in Financial Statements3
- Effective for annual periods beginning on or after January 1, 2024.
- Effective for annual periods beginning on or after January 1, 2025.
- Effective for annual periods beginning on or after January 1, 2027.
IFRS 16 - Lease Liability in a Sale and Leaseback
In September 2022, the IASB issued 'Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)' with amendments that clarify how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale. The Group does not expect this amendment to have any significant impact in its financial statements.
IAS 1 - Non-current Liabilities with Covenants
In October 2022, IASB issued 'Non-current Liabilities with Covenants (Amendments to IAS 1)' to clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. The Group does not expect the amendments to have any significant impact on its classification of non-current liabilities in its statement of financial position.
IAS 1 - Classification of Liabilities
In January 2020, IASB issued the final amendments in Classification of Liabilities as Current or Non-Current, which affect only the presentation of liabilities in the statement of financial position. They clarify that classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period and align the wording in all affected paragraphs to refer to the "right" to defer settlement by at least twelve months. The classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability. They make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services. The Group does not expect the amendments to have any significant impact on its presentation of liabilities in its statement of financial position.
IAS 7 and IFRS 7 - Supplier Finance Arrangements
In May 2023, the IASB issued 'Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)' which require an entity to provide additional disclosures about supplier finance arrangements. Solely credit enhancements for the entity or instruments used by the entity to settle their dues, are not supplier finance arrangements. Entity will have to disclose information that enables users of financial statements to assess how these arrangements affect its liabilities and cash flows and to understand their effect on its exposure to liquidity risk and how it might be affected if the arrangements were no longer available to it. The Group does not expect the amendments to have any significant impact on its presentation of liabilities.
IAS 21 - The Effects of Changes in Foreign Exchange Rates
In August 2023, the IASB issued 'Lack of Exchangeability (Amendments to IAS 21)' to provide guidance to specify which exchange rate to use when the currency is not exchangeable. An entity must estimate the spot exchange rate as the rate that would have applied to an orderly transaction between market participants at the measurement date and that would faithfully reflect the economic conditions prevailing. The Group does not expect this amendment to have any significant impact in its financial statements.
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TCS - Tata Consultancy Services Ltd. published this content on 12 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 April 2024 12:11:09 UTC.