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

Ind AS 113 is described as having been aligned with IFRS 13 in structure. Nirmal Ltd's accountant notices that paragraph 7(b) is shown as deleted in Ind AS 113 and asks why. According to the comparison with IFRS 13, what is the reason?

Paragraph 7(b) is deleted because it referred to IAS 26, Accounting and Reporting by Retirement Benefit Plans, which is not relevant for companies. The paragraph number is retained so that numbering stays consistent with IFRS 13.

  1. AThe paragraph referred to IAS 26 on retirement benefit plans, which is not relevant for companies, so it was deleted while the paragraph number was retainedCorrect
  2. BThe paragraph dealt with effective date and transition, which is not relevant in the Indian context
  3. CThe paragraph required fair value to be measured only by Indian companies listed abroad
  4. DThe paragraph was replaced by a new Indian-specific definition of fair value

Explanation

The comparison with IFRS 13 states that paragraph 7(b) refers to IAS 26 on retirement benefit plans, which is not relevant for companies, so it is deleted. The number is retained for consistency with IFRS 13. The effective date and transition reason applies to paragraphs C1-C5, not 7(b).

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