Skip to content

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

Godavari Steels Ltd is preparing a note on Ind AS 113. A trainee states that paragraph 7(b) of the Standard, which refers to IAS 26, still applies to its financial statements. What is the correct position?

Paragraph 7(b) of Ind AS 113 is deleted because it refers to IAS 26 on retirement benefit plans, which is not relevant for companies. The paragraph number is nevertheless retained so that numbering stays consistent with IFRS 13.

  1. AParagraph 7(b) is deleted in Ind AS 113 as IAS 26 is not relevant for companies, but its paragraph number is retainedCorrect
  2. BParagraph 7(b) applies to Godavari because it is a listed company
  3. CParagraph 7(b) is retained and requires fair value of retirement benefit plans to be reported
  4. DParagraph 7(b) is replaced with a new paragraph on effective date and transition

Explanation

Appendix 1 says paragraph 7(b) refers to IAS 26, Accounting and Reporting by Retirement Benefit Plans, which is not relevant for companies, so it is deleted. The paragraph number is retained to keep consistency with IFRS 13 numbering. The other options contradict this.

Did you get it right without looking?

One question tells you little. A timed set on Ind AS 113 Fair Value Measurement shows your real accuracy, how long you take and where you lose marks.

Practise Ind AS 113 Fair Value MeasurementFree diagnostic mock

More Ind AS 113 Fair Value Measurement questions