Objective of the fair value as per Ind AS 113
What is the objective of the fair value as per Ind AS 113?
Ind AS 113 sets out a framework for measuring fair value including the definition of the fair value and the necessary disclosures about fair value measurements. Fair value is the market-based measurement and not an entity specific measurement. The objective of a fair value measurement is to estimate the price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date under current conditions. An entity should use appropriate valuation technique that maximises the use of relevant observable inputs and minimises the use of all unobservable inputs provided the price of an identical asset or liability is not otherwise variable.