. V SM)(RT .~ CARMI.

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Vsmar l Aca(lcrny page, group «::~
fR
1: , -11?> th o Autho, & P,,nll n g ona P ubll!1hing right• wi
Meaning of FV
(Exit Price) ---C o t,--..,it;~~/~ . - - - - - - - - - - - . - i -- - - - - - - - - ,
A pplies on ly in situa t ion
,vherc 'F V n1easurement is
req u ir ed b y other INDAS
To Deter mine how .F V to be +
• Price Rec e ived to Sell an
O rderly Mark et
Mar ket
cg. 109, 16, 41 , 105 etc.
calculatc.d for a specific
Asset or Liability Asset o r P rice Paid to / Transaction Particip an ts
Settle a Liability
! ! !
B u yer & Selle r should h a ve
• Jn a n orderly Tra n saction A Transaction is o r derly only ~ s t Priority
when 2 cond itio ns are satisfi ed : Pri nc,pal Market - Wh,·re Greatest t he follow ing cha r a cte ris tics :-
++~ • Between Maeket P articipants J s o lu me an d Level of Activity in P res e nt ndep cnde n t
J
Note: IND AS 113 applies only to Exit price (1) Adequate Market Exposu r e
and not to entry price - • At Measure m e n t Dat e for a Market Based Ex ch ange J aoid Priority ~ nowlcdgeablc
& Most Advantageous Market -
( 2) Nut a Forced Sale \-Vh e re Maximum Amt is R e ceived ._..e-1(. ble to E n t er into l:'ra n sac t ion
fo r Sa le of Amt and Minimum Am t
is to be Pa id for Settlement of Lia b ility ....-VViling to Enter into Transactio n s
( not forced sale)
N o te: IND AS 113 Consider only market based Note - In case o f more than l
situations and not entity base d situation
fj 10 .sr. J:.
Principal Market, take the t M1'oJ'lr,--'
Most Advantageous Market ttJu__ ~ +- Qc\ '1o.,J:-~
0
i
Transaction Cost: Do not consider it to d etermi n e Fair Value
Fair Valuation Transportation Cost: If Location is Characteristics of A sset, the n
consider it to determine Fair Value
Asset s Liab ilit ies a
i
• i
Fair Value Hierarchy
! Is there Yes Use Quoted C a t egorizes I nputs t o Valu ation
Fin ancial N on- F in a nia l P rice T e chniques int o T h ree L evels
r ·····"·
Assets Assets
Use Valuation Techniq ues i.e. Based o n High est & best u se Level I In p u t Level 2 lnpu ts L eve l 3 Inputs
• Market Approac h ./ • P h ysica lly Possible
• Cost Approach
• I nco m e Approach
v
v
• Legally P e r m issible
• F ina n cially F e asib le l
Q u ote d P r ice in
l
O t h er t han Quoted P r ice of
l
• U no bse r v a b le I nputs
A c t iv e Market Level I w h ich a t e O bse r v able
E it h e r Directly o r I nd irectly • Fina nc ial Fo recasts
Yes No Eg. Q u oted P rice of Sha r es
+
Use FV of Identica l
+
Use Valuation Technique
in Stoc k M ark e t Eg. Quot ed P r ice of S imil a r
A sse t in Active M ar k e t s
Asset
't
Present Value Technique
Ot h er O b ser vable I n pu ts
M a,·k e t C o rro bo rated I n p uts
Lia