CORPORATE INFORMATION
Jainam Ferro Alloys (I) Limited (the 'Company') is a
Public Limited Company incorporated in India on the
6th day of March 2014 under the Companies Act 2013.
The company is involved in the business of
manufacturing of Ferro Alloy Metals. Its Shares are
listed on the NSE Emerge Stock Exchange.
STATEMENT OF COMPLIANCE
The financial statements comply, in all material
aspects, with Indian Accounting Standards ('Ind AS')
notified under Section 133 of the Companies Act, 2013
('the 2013 Act') read with Rule 3 of the Companies
(Indian Accounting Standards) Rules, 2015 and other
relevant provisions of the Act.
BASIS OF PREPARATION AND PRESENTATION
The financial statements have been prepared on the
historical cost basis, except for certain financial
instruments and defined benefit plans which are
measured at fair value 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 or non-current as per the
Company's normal operating cycle and other criteria
set out in the Schedule III to the 2013 Act.
CRITICAL ACCOUNTING ESTIMATES,
ASSUMPTIONS AND JUDGEMENTS
The preparation of the financial statements requires
management to make estimates, assumptions and
judgments that affect the reported balances of assets
and liabilities and disclosures as at the date of the
financial statements and the reported amounts of
income and expense for the periods presented. The
estimates and associated assumptions are based on
historical experience and other factors that are
considered to be relevant. Actual results may differ
from these estimates considering different
assumptions and conditions. Estimates and
underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are
recognized in the period in which the estimates are
revised and future periods are affected. The estimates
and assumptions that have a significant risk of causing
a material adjustment to the carrying values of assets
and liabilities within the next financial year are
discussed below.
DEFERRED INCOME TAX ASSETS AND
LIABILITIES
Significant management judgment is required to
determine the amount of deferred tax assets that can
be recognized, based upon the likely timing and the
level of future taxable profits.
The amount of total deferred tax assets could change if
management estimates of projected future taxable
income or if tax regulations undergo a change.
USEFUL LIVES OF PROPERTY, PLANT AND
EQUIPMENT ('PPE') AND INTANGIBLE ASSETS
Management reviews the estimated useful lives and
residual value of PPE and Intangibles at the end of
each reporting period. Factors such as changes in the
expected level of usage, technological developments
and product life-cycle, could significantly impact the
economic useful lives and the residual values of these
assets. Consequently, the future depreciation charge
could be revised and may have an impact on the profit
of the future years.
EMPLOYEE BENEFIT OBLIGATIONS
Employee benefit obligations are determined using
actuarial valuations. An actuarial valuation involves
making various assumptions that may differ from
actual developments. These include the estimation of
the appropriate discount rate, future salary increases
and mortality rates. Due to the complexities involved
in the valuation and its long-term nature, the
employee benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are
reviewed at each reporting date.
PROVISIONS AND CONTINGENCIES
From time to time, the Company is subject to legal
proceedings, the ultimate outcome of each being
subject to uncertainties inherent in litigation. A
provision for litigation is made when it is considered
probable that a payment will be made and the amount
can be reasonably estimated. Significant judgement is
required when evaluating the provision including, the
probability of an unfavorable outcome and the ability
to make a reasonable estimate of the amount of
potential loss. Litigation provisions are reviewed at
each accounting period and revisions made for the
changes in facts and circumstances. Contingent
liabilities are disclosed in the notes forming part of the
financial statements. Contingent assets are not
disclosed in the financial statements unless an inflow
of economic benefits is probable.
FOREIGN CURRENCY TRANSLATION
The functional currency of Jainam Ferro Alloys (I)
Limited (i.e. the currency of the primary economic
environment in which the Company operates) is the
Indian Rupee (').
On initial recognition, all foreign currency transactions
are recorded at exchange rates prevailing on the date
of the transaction. Monetary assets and liabilities,
denominated in a foreign currency, are translated at
the exchange rate prevailing on the Balance Sheet date
and the resultant exchange gains or losses are
recognized in the Statement of Profit and Loss.
PROPERTY, PLANT AND EQUIPMENT
An item of property, plant and equipment is
recognized as an asset if it is probable that the future
economic benefits associated with the item will flow to
the Company and its cost can be measured reliably.
This recognition principle is applied to the costs
incurred initially to acquire an item of property, plant
and equipment and also to costs incurred
subsequently to add to, replace part of, or service it
and subsequently carried at cost less accumulated
depreciation and accumulated impairment losses, if
any.
The cost of PPE includes interest on borrowings
directly attributable to the acquisition, construction or
production of a qualifying asset. A qualifying asset is
an asset that necessarily takes a substantial period of
time to be made ready for its intended use or sale.
Borrowing costs and other directly attributable cost are
added to the cost of those assets until such time as the
assets are substantially ready for their intended use,
which generally coincides with the commissioning
date of those assets.
The present value of the expected cost for the
decommissioning of an asset after its use is included in
the cost of the respective asset if the recognition criteria
for a provision is met. Machinery spares that meet the
definition of PPE are capitalized and depreciated over
the useful life of the principal item of an asset.
All other repair and maintenance costs, including
regular servicing, are recognized in the Statement of
Profit and Loss as incurred. When a replacement
occurs, the carrying value of the replaced part is de¬
recognized. Where an item of property, plant and
equipment comprises major components having
different useful lives, these components are accounted
for as separate items.
PPE acquired and put to use for projects are capitalized
and depreciation thereon is included in the project cost
till the project is ready for commissioning.
Depreciation methods, estimated useful lives and
residual value
Depreciation on PPE (except leasehold improvements
and PPE acquired under finance lease) is calculated
using the Written Down Value Method to allocate their
cost, net of their residual values, over their estimated
useful lives. However, leasehold improvements and
PPE acquired under finance lease are depreciated on a
straight-line method over the shorter of their
respective useful lives or the tenure of the lease
arrangement. Freehold land is not depreciated.
Schedule II to the Companies Act 2013 prescribes the
useful lives for various class of assets. For certain class
of assets, based on technical evaluation and
assessment, Management believes that the useful lives
adopted by it reflects the periods over which these
assets are expected to be used. Accordingly for those
assets, the useful lives estimated by the management
are different from those prescribed in the Schedule.
Management's estimates of theuseful lives for various
class of fixed assets are as given below:
Useful lives and residual values of assets arereviewed
at the end of each reporting period. Losses arising from
the retirement of, and gains or losses arising from
disposal/adjustments of PPE arerecognised in the
Statement of Profit and Loss.
INTANGIBLE ASSET
Capital work-in-progress ('CWIP') and intangible
assets under development
Projects under commissioning and other CWIP/
intangible assets under development are carried at
cost, comprising direct cost, related incidental
expenses and attributable borrowing cost.
Subsequent expenditures relating to property, plant
and equipment are capitalized only when it is probable
that future economic benefit associated with these will
flow to the Company and the cost of the item can be
measured reliably.
Advances given to acquire property, plant and
equipment are recorded as non-current assets and
subsequently transferred to CWIP on acquisition of
related assets.
INVESTMENT PROPERTY
Investment properties are land and buildings that are
held for long term lease rental yields and/ or for capital
appreciation. Investment properties are initially
recognised at cost including transaction costs.
Subsequently investment properties comprising
buildings are carried at cost less accumulated
depreciation and accumulated
impairment losses, if any.
Depreciation on buildings is provided over the
estimated useful lives as specified in above note for
property plat and equipment above. The residual
values, estimated useful lives and depreciation
method of investment properties are reviewed, and
adjusted on prospective basis as appropriate, at each
reporting date. The effects of any revision are included
in the Statement of Profit and Loss when the changes
arise.
An investment property is de-recognised when either
the investment property has been disposed of or do
not meet the criteria of investment property i.e. when
the investment property is permanently withdrawn
from use and no future economic benefit is expected
from its disposal. The difference between the net
disposal proceeds and the carryingamount of the asset
is recognised in the Statement of Profit and Loss in the
period of de-recognition.
RESEARCH AND DEVELOPMENT EXPENSES
Research expenses are charged to the Statement of
Profit and Loss as expenses in the year in which they
are incurred. Development costs are capitalised as an
intangible asset under development when the
following criteria are met:
• The project is clearly defined, and the costs
are separately identified and reliably
measured;
• The technical feasibility of the project is
demonstrated;
• The ability to use or sell the products created
during the project is demonstrated;
• The intention to complete the project exists
and use or sale of output manufactured
during the project;
• A potential market for the products created
during the project exists or their usefulness,
in case of internal use, is demonstrated, such
that the project will generate probable
• Future economic benefits; and
• Adequate resources are available to complete
the project.
These development costs are amortised over the
estimated useful life of the projects or the products
they are incorporated within. The amortisation of
capitalised development costs begins as soon as the
related product is released to production.
NON-CURRENT ASSETS HELD FOR SALE AND
DISCONTINUED OPERATIONS
Non-current assets (including disposal groups) are
classified as held for sale if their carrying amount
willbe recovered principally through a sale
transactionrather than through continuing use and a
sale isconsidered highly probable.
Non-current assets classified as held for sale are
measured at lower of their carrying amount and fair
value less cost to sell.
Non-current assets classified as held for sale are not
depreciated or amortised from the date when they are
classified as held for sale.
Non-current assets classified as held for sale and the
assets and liabilities of a disposal group classified as
held for sale are presented separately from the other
assets and liabilities in the Balance Sheet.
A discontinued operation is a component of the entity
that has been disposed off or is classified as held for
sale and:
• represents a separate major line of business or
geographical area of operations and;
• Is part of a single coordinated plan to dispose
of such a line of business or area of
operations.
The results of discontinued operations are presented
separately in the Statement of Profit and Loss.
FINANCIAL INSTRUMENTS
Investments and other financial assets:
Classification
The Company classifies its financial assets in the
following measurement categories:
• Those to be measured subsequently at fair
value (either through OCI, or through profit
or loss), and
• Those measured at amortised cost.
The classification depends on the Company's business
model for managing the financial assets and the
contractual terms of the cash flows. For assets
measured at fair value, gains and losses will either be
recorded in the Statement of Profit and Loss or
through OCI.
For investments in debt instruments, this will depend
on the business model in which the investment is held.
For investments in equity instruments, this will
depend on whether the Company has made an
irrevocable election at the time of initial recognition to
account for the equity investment at fair value through
OCI.
The Company's policy is to reclassify debt investments
when and only when its business model for managing
those assets changes.
Debt instruments
Measurement
A financial asset or financial liability is initially
measured at fair value plus, for an item not at fair
value through profit and loss (FVTPL), transaction
costs that are directly attributable to its acquisition or
issue. Transaction costs of financial assets carried at
fair value through profit or loss are expensed in the
Statement of Profit and Loss.
Subsequent measurement of debt instruments
depends on the Company's business model for
managing the asset and the cash flow characteristics of
the asset. There are three measurement categories into
which the Company classifies its debt instruments:
• Amortised cost
Assets that are held for collection of contractual cash
flows, where those cash flows represent solely
payments of principal and interest, are measured at
amortised cost. A gain or loss on a debt investment
(unhedged) that is subsequently measured at
amortised cost is recognised in the Statement of Profit
and Loss when the asset is derecognised or impaired.
• Fair value through other comprehensive income
('FVTOCI')
Assets that are held for collection of contractual cash
flows and for selling the financial assets, where the
assets' cash flows represent solely payments of
principal and interest, are measured at FVTOCI.
Movements in the carrying amount are recorded
through OCI, except for the recognition of impairment
gains or losses, interest revenue and foreign exchange
gains or losses which are recognised in the Statement
of Profit and Loss. When the financial asset is
derecognised, the cumulative gain or loss previously
recognised in OCI is transferred from OCI to Other
equity.
• Fair value through profit or loss ('FVTPL')
Assets that do not meet the criteria for amortised cost
or FVTOCI are measured at FVTPL. A gain or loss on
a debt investment that is subsequently measured at
FVTPL (unhedged) is recognised net in the Statement
of Profit and Loss in the period in which it arises.
Interest income from these financial assets is included
in other income.
Equity instruments
The Company subsequently measures all equity
investments at fair value. Where theCompany's
management has elected to present fair value gains
and losses on equity investments in OCI, there is
nosubsequent reclassification of fair value gains
andlosses to the Statement of Profit and Loss. When
thefinancial asset is derecognised, the cumulative
gainor loss previously recognised in OCI is
reclassifiedto equity. Dividends from such
investments arerecognised in the Statement of Profit
and Losswithin other income when the Company's
rightto receive payments is established.
Impairmentlosses (and reversal of impairment losses)
on equityinvestments measured at FVTOCI are not
reportedseparately from other changes in fair value.
Cash and cash equivalents
The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant risk
of change in value with a maturity within three
months or less from the date of purchase, to be cash
equivalents. Cash and cash equivalents consist of
balances with banks, which are unrestricted for
withdrawal and usage.
Derecognition of financial assets
• A financial asset is derecognised only when
the Company has transferred the rights to
receive cash flows from the financial asset; or
• Retains the contractual rights to receive the
cash flows of the financial asset, but assumes
a contractual obligation to pay the cash flows
to one or more recipients.
Where the Company transfers an asset, it evaluates
whether it has transferred substantially all risks and
rewards of ownership of the financial asset. Where the
Company has transferred substantially all risks and
rewards of ownership, the financial asset is
derecognised. Where the Company has not transferred
substantially all risks and rewards of ownership of the
financial asset, the financial asset is not derecognised.
Where the Company has neither transferred a financial
asset nor retained substantially all risks and rewards
of ownership of the financial asset, the financial asset
is derecognized if the Company has not retained
control of the financial asset. Where the Company
retains control of the financial asset, the asset is
continued to be recognised to the extent of continuing
involvementin the financial asset.
Debt and equity instruments
Debt and equity instruments are classified as either
financial liabilities or as equity in accordance with the
substance of the contractual arrangement.
An equity instrument is any contract that evidences a
residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments
issued by the Company are recorded at the proceeds
received, net of direct issue costs.
Financial liabilities
The Company's financial liabilities comprise
borrowings, trade payables and other liabilities. These
are initially measured at fair value, net of transaction
costs, and are subsequently measured at amortised
cost using the EIR method. The EIR is a method of
calculating the amortised cost of a financial liability
and of allocating interest expenseover the relevant
period at effective interest rate. The effective interest
rate is the rate that exactly discounts estimated future
cash payments through the expected life of the
financial liability, or, where appropriate, a shorter
period. Changes to the carrying amount of a financial
liability as a result of renegotiation or modification of
terms that do not result in derecognition of the
financial liability, is recognised in the Statement of
Profit and Loss.
Derecognition of financial liabilities
The Company derecognises financial liabilities when,
and only when, its obligations are discharged,
cancelled or they expire.
Presentation
Borrowings are classified as current liabilities unless
the Company has an unconditional right to defer
settlement of the liability for at least 12 months after
the reporting period. Trade and other payables are
presented as currentliabilities unless payment is not
due within 12 months after the reporting period.
Derivatives and hedging activities
In the ordinary course of business, the Company uses
certain derivative financial instruments to reduce
business risks which arise from its exposure to foreign
exchange. When the Company opts to undertake
hedge accounting, the Company documents, at
theinception of the hedging transaction, the economic
relationship between hedging instruments and
hedged items including whether the hedging
instrument is expected to offset changes in cash flows
or fair values of hedged items. The Company
documents its risk management objective and strategy
for undertaking various hedge transactionsat the
inception of each hedge relationship.
Derivatives are initially recognised at fair value on the
date the derivative contract is entered into and are
subsequently remeasured to their fair value at the end
of each reporting period. The accounting for
subsequent changes in fair value depends on whether
the derivative is designated as a hedging instrument,
and if so, the nature of the item being hedged and the
type of hedge relationship designated.
Derivatives that are not designated as hedges
When derivative contracts to hedge risks are not
designated as hedges, such contracts are accounted
through FVTPL.
As at the year-end, there were no designated
accounting hedges.
The entire fair value of a hedging derivative is
classified as a noncurrent asset or liability when the
remaining maturity of the hedged item exceeds 12
months; it is classified as a current asset or liability
when the remaining maturity of the hedged item does
not exceed 12 months.
Fair value of financial instruments
In determining the fair value of its financial
instruments, the Company uses a variety of methods
and assumptions that are based on market conditions
and risks existing at each reporting date. The methods
used to determine fair value include discounted cash
flow analysis, available quoted market prices and
dealer quotes. All methods of assessing fair value
result in general approximation of value.
IMPAIRMENT
Financial assets (other than at fair value)
The Company assesses on a forward looking basis the
expected credit losses associated with its assets carried
at amortised cost and debt instruments carried at
FVTOCI. The impairment methodology applied
depends on whether there has been a significant
increase in credit risk. In respect of trade receivables
the Company applies the simplified approach
permitted by Ind AS 109 - Financial Instruments,
which requires expected lifetime losses to be
recognised upon initial recognition of the receivables.
PPE, CWIP and Intangible Assets
The carrying values of assets / cash generating units
('CGU') at each Balance Sheet date are reviewed to
determine whether there is any indication that an asset
may be impaired. If any indication of such impairment
exists, the recoverable amount of such assets / CGU is
estimated and in case the carrying amount of these
assets exceeds their recoverable amount, an
impairment loss is recognised in the Statement of
Profit and Loss. The recoverable amountis the higher
of the net selling price and their value in use. Value in
use is arrived at by discounting the future cash flows
to their present value based on an appropriate
discount factor. Assessment is also done at each
Balance Sheet date as to whether there is indication
that an impairment loss recognized for an asset in prior
accounting periods no longer exists or may have
decreased, consequent to which such reversal of
impairment loss is recognised in theStatement of Profit
and Loss.
INVENTORIES
Inventories are valued at lower of cost (on First In First
Out basis) and net realisable value after providing for
obsolescence and other losses, whereconsidered
necessary. Cost includes all charges inbringing the
goods to their present location andcondition,
including other levies, transit insuranceand receiving
charges. Work-in-progress andfinished goods include
appropriate proportion ofoverheads and, where
applicable, taxes and duties.Net realisable value is the
estimated selling price inthe ordinary course of
business, less the estimatedcosts of completion and the
estimated costsnecessary to make the sale.
REVENUE RECOGNITION
Sale of goods
Revenue is recognised upon transfer of control
ofpromised goods to customers in an amount
thatreflects the consideration which the
Companyexpects to receive in exchange for those
goods.Revenue from the sale of goods is recognised
atthe point in time when control is transferred to
thecustomer which is usually on dispatch / delivery
ofgoods, based on contracts with the
customers.Revenue is measured based on the
transactionprice, which is the consideration, adjusted
forvolume discounts, price concessions,
incentives,and returns, if any, as specified in the
contracts withthe customers. Revenue excludes taxes
collectedfrom customers on behalf of the
government.Accruals for discounts/incentives and
returns areestimated (using the most likely method)
based onaccumulated experience and underlying
schemesand agreements with customers. Due to the
shortnature of credit period given to customers, there
isno financing component in the contract.
Interest income
For all debt instruments measured either at amortised
cost or at FVTOCI, interest income is recorded using
the EIR method.
Dividend income
Dividend income is accounted for when Company's
right to receive the income is established.
Insurance claims
Insurance claims are accounted for on the basis
ofclaims admitted / expected to be admitted and tothe
extent that there is no uncertainty in receiving the
claims.
LEASES
The determination of whether an agreement is, or
contains, a lease is based on the substance of the
agreement at the date of inception.
Finance Leases:
Lease arrangements in which substantially all risks
and rewards of ownership of the under-lying assets
are transferred to the Company, are classified as
finance lease.
Assets held under finance leases are initially
recognised at their fair value at the inception of the
lease or, if lower, at the present value of the minimum
lease payments. The corresponding liability to the
lessor is included in the Balance Sheet as a finance
lease obligation. Lease payments are apportioned
between finance expenses and reduction of the lease
obligation so as to achieve a constant rate of interest on
the remaining balance of the liability.
Operating leases:
The leases which are not classified as finance lease are
operating leases.
Lease arrangements where the risks and rewards of
ownership of an asset substantially vest with the lessor
are recognised as operating leases. Lease rentals under
operating leases are recognised in the Statement of
Profit and Loss on a straight-line basis over the lease
term unless the payments are structured to increase in
line with expected general inflation to compensate for
the lessor's expected inflationary cost increases.
BORROWING COSTS
Borrowing costs are interest and ancillary costs
incurred in connection with the arrangement of
borrowings. General and specific borrowing costs
attributable to acquisition and construction of
qualifying assets is added to the cost of the assets upto
the date the asset is ready for its intended use.
Capitalisation of borrowing costs is suspended
andcharged to the Statement of Profit and Loss during
extended periods when active development activity on
the qualifying assets is interrupted. All other
borrowing costs are recognised in the Statement of
Profit and Loss in the period in which they are
incurred.
GOVERNMENT GRANTS
Government grants and subsidies are recognized
when there is reasonable assurance that the Company
will comply with the conditions attached to them and
the grants and subsidies will be received. Government
grants whose primary condition is that the Company
should purchase, construct or otherwise acquire non¬
current assets are recognised as deferred revenue in
the Balance sheet and transferred to the Statement of
Profit and Loss on systematic and rational basis over
the useful lives of the related asset.
SEGMENT REPORTING
The operating segments are the segments for which
separate financial information is available and for
which operating profit/loss amounts are evaluated
regularly by the Managing Director and Chief
Executive Officer (who is the Company's chief
operating decision maker) in deciding how to allocate
resources and in assessing performance.
The accounting policies adopted for segment reporting
are in conformity with the accounting policies of the
Company. Segment revenue, segment expenses,
segment assets and segment liabilities shall be
identified to segments onthe basis of their relationship
to the operating activities of the segment. Inter
segment revenue shall be accounted on the basis of
transactions which are primarily determined based on
market / fair value factors. Revenue, expenses, assets
and liabilities which relate to the Company as a whole
and are not allocable to segments on a reasonable basis
shall be included under 'unallocated revenue /
expenses / assets / liabilities'.
INCOME TAX
Tax expense for the year comprises current and
deferred tax. The tax currently payable is based on
taxable profit for the year. Taxable profit differs from
net profit as reported in the Statement of Profit or Loss
because it excludes items of income or expense that are
taxable or deductible in other years and it further
excludes items that are never taxable or deductible.
The Company's liability for current tax iscalculated
using tax rates and tax laws that have been enacted or
substantively enacted by the end of the reporting
period.
Current tax assets and current tax liabilities are offset
when there is a legally enforceable right to set off the
recognised amounts and there is an intention to realise
the asset or to settle the liability on a net basis.
Deferred tax is the tax expected to be payable or
recoverable on differences between the carrying
values of assets and liabilities in the financial
statements and the corresponding tax bases used in the
computation of taxable profit and is accounted for
using the balance sheet liability method. Deferred tax
liabilities are generally recognised for all taxable
temporary differences arising between the tax base of
assets and liabilities and their carrying amount, except
when the deferred income tax arises from the initial
recognition of an asset or liability in a transaction that
is not a business combination and affects neither
accounting nor taxable profit or loss at the time of the
transaction. In contrast, deferred tax assets are only
recognised to the extent that it is probable that future
taxable profits will be available against which the
temporary differences can be utilised.
The carrying value of deferred tax assets is reviewed
at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of
the asset to be recovered.
Deferred tax is calculated at the tax rates that are
expected to apply in the period when the liability is
settled or the asset is realised based on the tax rates and
tax laws that have been enacted or substantially
enacted by the end of the reporting period. The
measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from
the manner in which the Company expects, at the end
of the reporting period, to cover or settle the carrying
value of its assets and liabilities.
Deferred tax assets and liabilities are offset to the
extent that they relate to taxes levied by the same tax
authority and there are legally enforceable rights to set
off current tax assets and current tax liabilities within
that jurisdiction.
Current and deferred tax are recognised as an expense
or income in the statement of profit and loss, except
when they relate to items credited or debited either in
other comprehensive income or directly in equity, in
which case the tax is also recognised in OCI or directly
in equity.
Deferred tax assets include a credit for the Minimum
Alternate Tax ('MAT') paid in accordance with the tax
laws, which is likely to give future economic benefits
in the form of availability of set off against future
income tax liability. MAT asset is recognized as
deferred tax assets in the Balance Sheet when the asset
can be measured reliably, and it is probable that the
future economic benefit associated with the asset will
be realised.
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