Ind AS 113: Fair Value Measurement#
Fair Value Definition#
- Price received in orderly transaction
- Between market participants
- At measurement date
Hierarchy#
| Level | Input | Examples |
|---|---|---|
| Level 1 | Quoted prices | Listed equity |
| Level 2 | Observable inputs | Derivatives |
| Level 3 | Unobservable inputs | Private equity |
Valuation Techniques#
-
Market Approach
- Comparable transactions
- Multiple method
-
Income Approach
- Discounted cash flows
- Option pricing
-
Cost Approach
- Replacement cost
- Adjusted for obsolescence
Disclosure Requirements#
- Fair value hierarchy
- Valuation techniques
- Significant inputs
- Level 3 sensitivity