Skip to content

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

Which statement about Ind AS 113 is correct as per its Appendix 1 comparison with IFRS 13?

Paragraphs C1-C5 of IFRS 13 are omitted from Ind AS 113 as effective date and transition are not relevant in India, but their paragraph numbers are kept to remain consistent with IFRS 13 numbering.

  1. AParagraphs C1-C5 are included in Ind AS 113 with Indian effective dates
  2. BParagraphs C1-C5 of IFRS 13 are not included in Ind AS 113 because they relate to effective date and transition, but their paragraph numbers are retainedCorrect
  3. CParagraph 7(b) on IAS 26 is retained and applies to all companies
  4. DInd AS 113 defines fair value differently from IFRS 13 as an entry price

Explanation

Appendix 1 says C1-C5 are omitted as effective date and transition are not relevant in India, yet the numbers are retained for consistency. Paragraph 7(b) is deleted because IAS 26 is not relevant for companies. The fair value definition is an exit price, not an entry price.

Did you get it right without looking?

One question tells you little. A timed set on Fair Value Measurement (Ind AS 113) shows your real accuracy, how long you take and where you lose marks.

Practise Fair Value Measurement (Ind AS 113)Free diagnostic mock

More Fair Value Measurement (Ind AS 113) questions