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

Meenakshi Steels Ltd's accountant states the following about Ind AS 113 Appendix 1. Which statement is correct?

Appendix 1 to Ind AS 113 is not part of the Standard. Its only purpose is to bring out the major differences, if any, between Ind AS 113 and IFRS 13. It does not contain mandatory requirements or change the definition of fair value.

  1. AAppendix 1 is not part of the Standard and only brings out major differences, if any, between Ind AS 113 and IFRS 13Correct
  2. BAppendix 1 is a mandatory part of the Standard and sets out the measurement requirements for Level 3 inputs
  3. CAppendix 1 lists all Ind AS that must apply Ind AS 113 when measuring fair value
  4. DAppendix 1 replaces the definition of fair value with an Indian-specific definition

Explanation

Appendix 1 carries a note that it is not part of the Indian Accounting Standard; its purpose is only to bring out major differences, if any, between Ind AS 113 and IFRS 13. It does not set requirements or change the definition of fair value, which follows the exit price definition.

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