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Atul Ltd | Annual Report 2017-18
z) Research and Development expenditure:
Research and Development expenditure is charged to revenue under the natural heads of account in the year in which
it is incurred. Research and Development expenditure on property, plant and equipment is treated in the same way as
expenditure on other property, plant and equipment.
aa) Earnings per share:
Basic earnings per share (EPS) is calculated by dividing the profit attributable to owners of Atul Ltd by the weighted average
number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during
the year. For the purpose of calculating diluted EPS, the net profit or loss for the period attributable to equity shareholders
and the weighted average number of additional equity shares that will have been outstanding assuming the conversion of
all dilutive potential equity shares.
ab) Contributed equity:
Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown
in equity as a deduction, net of tax, from the proceeds.
Critical estimates and judgements
Preparation of the Financial Statements require the use of accounting estimates which, by definition, will seldom equal the
actual results. This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of
items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those
originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together
with information about the basis of calculation for each affected line item in the Financial Statements.
The areas involving critical estimates or judgements are:
i)
Estimation of useful life of tangible assets: Note 2
ii) Estimation of defined benefit obligation: Note 29.6
iii) Estimated Goodwill impairment: Note 4(a)
iv) Consolidation decisions and classification of joint arrangements: Note 29.14
Estimates and judgements are continually evaluated. They are based on historical experience and other factors including
expectations of future events that may have a financial impact on the Group and that are believed to be reasonable under the
circumstances.
Note 1 Significant Accounting Policies
(continued)
Notes
to the Consolidated Financial Statements