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CMA Final · Corporate Financial Reporting · Valuation of Shares (including Determination of Goodwill)

Meridian Pharma wants to value its equity investments and also measure a few items. Which of the following measurements falls within the measurement and disclosure requirements of Ind AS 113?

The fair value of an unquoted equity investment falls within Ind AS 113. The standard excludes Ind AS 102 share-based payments, Ind AS 116 leases, and measures like net realisable value and value in use, which resemble fair value but are not fair value.

  1. ANet realisable value of inventory under Ind AS 2
  2. BValue in use of a cash-generating unit under Ind AS 36
  3. CFair value of an unquoted equity investment held by the companyCorrect
  4. DMeasurement of an equity-settled share option grant under Ind AS 102

Explanation

Ind AS 113 excludes share-based payment transactions under Ind AS 102, leasing transactions under Ind AS 116, and measures similar to but not fair value, such as NRV and value in use. Fair value of an equity investment is not excluded, so it is within the standard's scope.

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