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CA Final · Financial Reporting · Ind AS 113 Fair Value Measurement

Godavari Power Ltd is reviewing the following statements about Ind AS 113 for a board note. Which statement is correct, based on the Standard's text?

Ind AS 113 deletes paragraph 7(b), which referred to IAS 26 on retirement benefit plans, because it is not relevant for companies, but retains the paragraph number for consistency with IFRS 13. Paragraphs C1-C5 are omitted, and the definition is unchanged as an orderly-transaction exit price.

  1. AParagraph 7(b), which referred to IAS 26 on retirement benefit plans, is deleted in Ind AS 113 but the paragraph number is retainedCorrect
  2. BParagraphs C1-C5 on effective date and transition are retained in full text in Ind AS 113 because they apply in India
  3. CInd AS 113 defines fair value as an entity-specific entry price paid to acquire an asset at the acquisition date
  4. DInd AS 113 removes the requirement that the transaction be orderly, to suit Indian markets

Explanation

Appendix 1 of Ind AS 113 notes that paragraph 7(b) refers to IAS 26, not relevant for companies, so it is deleted while the paragraph number is retained for consistency with IFRS 13. Paragraphs C1-C5 are not included because they relate to effective date and transition, though their numbers are retained. The definition is an exit price in an orderly transaction.

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