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

Tapti Logistics Ltd's accountant lists features of the fair value definition in Ind AS 113 for a training session. Which list correctly captures all elements of the definition?

The definition of fair value has four elements: the price received to sell an asset or paid to transfer a liability, in an orderly transaction, between market participants, at the measurement date. Entry prices, forced sales, related party deals and cost-based amounts are not part of it.

  1. APrice received to sell an asset or paid to transfer a liability; orderly transaction; between market participants; at the measurement dateCorrect
  2. BPrice paid to acquire an asset; forced transaction; between related parties; at the transaction date
  3. CPrice received to sell an asset only; orderly transaction; between the entity and its auditor; at the year-end of the prior period
  4. DCost less depreciation; orderly transaction; between group entities; at the acquisition date

Explanation

The definition covers the price received to sell an asset or paid to transfer a liability, in an orderly transaction, between market participants, at the measurement date. The other lists wrongly include entry prices, forced or related party transactions, or cost-based amounts.

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