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CMA Final · Corporate Financial Reporting · Fair Value Measurement (Ind AS 113)

Which statement about Appendix 1 of Ind AS 113 is correct?

Appendix 1 of 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 the corresponding IFRS 13 issued by the IASB.

  1. AIt is part of the Standard and sets mandatory measurement rules
  2. BIt is not part of the Standard and only brings out major differences, if any, between Ind AS 113 and IFRS 13Correct
  3. CIt is part of the Standard and lists the Indian entities required to apply fair value
  4. DIt is not part of the Standard and replaces the definition of fair value for Indian companies

Explanation

The note states that Appendix 1 is not a part of the Indian Accounting Standard and its purpose is only to bring out the major differences, if any, between Ind AS 113 and IFRS 13. It therefore neither sets mandatory rules nor replaces the definition.

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