Page 199 - FBL AR 2019-20

CORPORATE STATUTORY FINANCIAL
OVERVIEW STATEMENTS STATEMENTS

Notes to the Consolidated financial statements for the year ended March 31, 2020

useful life and the expected residual value at the end of its life. The useful lives and residual values of Group’s assets are determined by
the management at the time when the asset is acquired and reviewed periodically, including at each financial year end. The lives are
based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes
in technical or commercial obsolescence arising from changes or improvements in production or from a change in market demand of
the product or service output of the asset.
Assets and obligations relating to employee benefits:
The employment benefit obligations depend on a number of factors that are determined on an actuarial basis using a number of
assumptions. The assumptions used in determining the net cost/ (income) include the discount rate, inflation and mortality assumptions.
Any changes in these assumptions will impact upon the carrying amount of employment benefit obligations.
Tax expense: [refer note 2(j)and note 59]
The Parent Company’s tax jurisdiction is India. Significant judgements are involved in determining the provision for income taxes, if any,
including amount expected to be paid/recovered for uncertain tax positions. Further, significant judgement is exercised to ascertain
amount of deferred tax asset (DTA) that could be recognised based on the probability that future taxable profits will be available against
which DTA can be utilized and amount of temporary difference in which DTA cannot be recognised on want of probable taxable profits.
Minimum Alternate Tax (‘MAT’) credit is recognised as deferred tax asset only when and to the extent there is convincing evidence that
the Parent Company will pay normal income tax during the period for which the MAT credit can be carried forward for set-off against
the normal tax liability. MAT credit recognised as an asset is reviewed at each balance sheet date and written down to the extent the
aforesaid convincing evidence no longer exists
Valuation of investment property [refer note 58]

Impairment of tangible and intangible assets other than goodwill [refer note 2(o)]
Impairment of Goodwill [Refer note 2(p)]
Provisions: [refer note 2(t)]
Write down in value of inventories: (refer note 14)

Estimation of uncertainty relating to COVID-19 global health pandemic – (Refer note 68)

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