Chairman Message

I feel extremely honored to assume the office of Chairperson of one of the most enriched branch of CIRC of ICAI. It gives me immense pleasure to pen down my first message and offer my heartfelt gratitude for entrusting me with the responsibility of leading the Jaipur Branch of ICAI. The trust and confidence reposed in me by one and all, fills me with unparalleled joy and happiness and continuously reminds me of my responsibilities towards members, colleagues, beloved students and staff members.

Further it gives immense pleasure to share that every time I walk down the members’ lounge at the entrance of the ICAI Bhawan, Jaipur, and glance through at the names of the stalwarts who have occupied this revered chair, I get inspired to carry this torch forward and live up to the standards set by our illustrious past chairpersons and great stalwarts. I am confident that with all of your wishes, support and blessings I shall live up to the expectations. We would be happy to receive constructive ideas from all our members for the benefit of the profession.

I along with the team at Jaipur Branch believe in the ethos of 'Empowered by Professionalism- Driven by Values.' This statement simply portrays tremendous promise and our commitment to professionalism driven by integrity. We also acknowledge that circumstances and various legal developments bring in new challenges as professionals and thereby presenting a plethora of opportunities within them. Keeping in view the above challenges, we at the Jaipur branch of CIRC, will surely act a catalyst for the professional members and our beloved students and will respond to their need to remain updated on the developments, in the need of the hour.

Further, It gives me immense pleasure to express my pride that professional stalwarts from our own region are representing various committees at Central and Regional counsel level and with such prodigies at the realm of the affairs the future looks secure and bright. We at branch look forward to work together for the greater glory of our alma mater.

At the end, I, along with my team of office bearers at Jaipur Branch of CIRC of ICAI, namely CA Anil Yadav- Vice Chairman, CA. Kuldeep Gupta, Secretary, CA . Akash Bargoti, Treasurer, CA Vijay Agarwal, CICASA Chairman, CA Ankit Maheshwari, Member CICASA and CA Shishir Agrawal collectively look forward to take our branch ahead and to ensure display of the highest levels of professionalism.

Wishing everyone a very Happy Chartered Accountants Day. For us as professionals zenith is the limit. Jai Hind Jai ICAI.

With Best Wishes

In my very first message as a Secretary of Jaipur Branch, I would like to extend my warm gratitude to all my professional colleagues and to the managing committee of Jaipur Branch of CIRC of ICAI for extending their faith and trust in me. As the new managing committee takes over with great vigour and enthusiasm, I remember the words of Saint Mother Teresa, “None of us, including me, ever do great things. But we can all do small things with great love, and together we can do something

wonderful." I believe that with the determined and sincere efforts of all the members, we will be able to set great milestones in providing a good professional environment to all the members and students to grow exponentially. In the past three months the Branch has been organized regular meetings and workshops for members & students and we will continue this work as we proceed. All events, workshops and meetings have been a great success with the participation and support of all the professional friends. It gives me immense joy to tell that the Jaipur Branch has come up with “Benefits for Members” whereby we have tried to provide our members with great services at discounted prices for hospitals, hotels, cafes and other utility segments. The global economic scenario is changing; we are looking towards achievement of more realistic goals for a multi-billion dollar economy. As Chartered Accountants, it becomes our humble responsibility that we acknowledge these changes in the economy and brace ourselves for new opportunities. As I conclude this message, I would like to assure all my professional friends that I will deliver my best services, as a Secretary of the Branch. I am open to suggestions from all the members and you can feel free to give your valuable feedback for the progress and prosperity of the professional. I would also request all the members to actively participate in all the branch activities and also contribute their knowledge filled articles for the upcoming editions of the newsletter.

With best regards

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1. Half Day Seminar on Demonetization 2.0 or a nip in the bud? (01.03.2019 – 3 CPE)

Jaipur Branch of CIRC of ICAI organized Half Day Seminar on Demonetization 2.0 or a nip in the

bud? on 1st March, 2019 at ICAI Bhawan, Jaipur. In this seminar CA. Rohit Ruwatia Agarwal &

CA. Jatin Harjai were the eminent speakers. CA. Rohit Ruwatia delivered the lecture on

Unregulated Deposit Scheme Ordinance and CA Jatin Harjai delivered the lecture on

Amendments & Critical aspects in GST. CA. Rekha Maheshwari was the convenor of the

seminar. On this occasion Jaipur Branch of CIRC of ICAI also welcomed the newly elected

Managing Committee Members of Jaipur Branch for the term 2019-22 & CA. Abhishek Sharma,

Treasurer, CIRC of ICAI.

2. Orientation Programme for CAs appearing in the Campus Interview (10. 03.19)

An orientation programme was conducted on 10.03.2019 by the Branch for young & budding

Chartered Accountants. This programme was aimed at imparting them with the training

required for appearing in the Campus Interviews scheduled at various places in the country and

get the desired placements.

The training was provided keeping in mind the contemporary demands of the corporate sector. CA. Prakash Sharma, Central Council Member, ICAI & Chief Coordinator, CA. Satish Kr. Gupta, Central Council Member, ICAI, CA. Abhishek Sharma, Treasurer, CIRC, CA. Sachin Kr. Jain, Regional Council Member, CIRC, CA. Dinesh Kr. Jain, Regional Council Member, CIRC, CA. Lokesh Kasat, Chairman, Jaipur Branch of CIRC of ICAI, CA. Kuldeep Gupta, Secretary, Jaipur Branch of CIRC of ICAI and other Managing Committee Members were present to inspire and boost up the morale of the newly qualified Chartered Accountants. In this programme CA. Sanjay Rajawat delivered the lecture on "Journey from Campus to Corporate", Adv. Sanjay Jhanwar talked about "Business Communication and Corporate Ethics", CA. Prayas Sharma discussed on "Confidence Building & Interview Techniques", CA. Anil Bafna discussed the "Opportunities in Financial Services Sector", CA. Mohit Gupta elaborated the "Role of CA in Digital Era" and CA. Mohit Sachetee conducted the session on Mock Interview.

3. Campus Placement Programme (11.3.2019 to 13.3.19)

Jaipur Branch of CIRC of ICAI participated in campus placement programme for the newly qualified chartered accountants under the aegis of ICAI, New Delhi from 11.3.2019 to 13.3.2019. From Jaipur Campus 11 companies participated in the placement programme . The companies which participated in this campus placement programme are as follows:-

S.No Company Name

1 Infosys

2 Whirlpool of India Ltd.

3 Wipro

BRANCH ACTIVITY DURING THE MONTH OF MARCH-2019

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S.No Company Name

4 The Tata Power Company Ltd.

5 S.R. Batliboi & Co. LLP

6 Minda Industries Ltd

7 Exl Service. Com (India) Private Limited)

8 Maruti Suzuki India Limited

9 ICICI Bank

10 TCS

11 Viraj Profile Limited

4. Meeting on "Recent Amendments in Companies Act & IBC" (16.03.2019-2CPE)

Jaipur Branch of CIRC of ICAI organized a SC Meeting on Recent Amendments in Companies

Act & IBC on 16.03.2019 at ICAI Bhawan, Jaipur. CA, Sandeep Kumar Jain addressed the

members on the above subject. CA. Yash Gupta was convenor of the programme.

5. Full Day Seminar on Bank Audit (27.03.2019 – 6CPE)

Jaipur Branch of CIRC of ICAI organized Full Day Seminar on Bank Audit on 27th March, 2019 at

Harishchandra Totuka Bhawan, Narayan Singh Circle, Jaipur under the aegis of the Committee

on Professional Development & NPO.

CA Prakash Sharma, Vice Chairman, Committee on Professional Development & NPO and Programme Director, CA. Abhishek Sharma, Treasurer, CIRC, ICAI, CA. Sachin Jain Regional Council Member, CIRC, ICAI, CA. Dinesh Kr. Jain, Regional Council Member, CIRC, ICAI, CA. Lokesh Kasat, Chairman, Jaipur Branch, CA. Kuldeep Gupta, Secretary, Jaipur Branch & and other Managing Committee Members of the Jaipur Branch inaugurated the programme by lighting the lamp.

First Technical Session In this session CA. Akesh Vyas from New Delhi was the eminent Speaker. CA. Akesh Vyas delivered the lecture on Loans, Advances & Prudential Norms.

Special Session In this session CA. Prakash Sharma, Vice Chairman, PDC & Central Council Member, ICAI & CA. Satish Kr. Gupta, CCM, ICAI addressed the members with their words of wisdom.

Second Technical Session In this session CA. Nayan R. Kothari from Gujrat was the eminent speaker. He delivered the lecture on Practical Approach on Bank Audit & LFAR.

Third Technical Session In this session CA. Puneet Mundhra & Ms. Swapnil Agarwal from Infosys were the eminent speakers. They addressed the members on Finacle.

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6. Holi Sneh Milan-2019 (27.03.2019)

The Jaipur Branch organized Holi Sneh Milan-2019 at B-5 Lawn, C-Scheme, Jaipur on 27.03.19

for Chartered Accountants and their families. Sh. (CA) O P Galhotra, IPS, DG Home Guard,

Govt. of Rajasthan was the Chief Guest of the programme.

CA Prakash Sharma, CCM, ICAI, CA. Abhishek Sharma, Treasurer, CIRC, ICAI, CA. Sachin Jain

Regional Council Member, CIRC, ICAI, CA. Lokesh Kasat, Chairman, Jaipur Branch, CA. Kuldeep

Gupta, Secretary, Jaipur Branch & and other Managing Committee Members Jaipur Branch

inaugurated the programme by lighting the lamp. The main attraction of the programme were

Live music by "AUGUST Note-Rock Band", Selfie Zone, Kids Play Zone and Lucky Draw. CA

members with their families participated in good numbers in the programme. The programme

was followed with sumptuous dinner.

7. Half Day Seminar on Bank Audit for CA students (28.03.2019)

Jaipur Branch of CIRC of ICAI organized "Half Day Seminar on Bank Audit" on 28th March, 2019

at ICAI Bhawan, Jaipur. CA. Lokesh Kasat, Chairman, Jaipur Branch, CA. Kuldeep Gupta,

Secretary, Jaipur Branch & and other Managing Committee Members of Jaipur Branch

inaugurated the programme by lighting the lamp. CA. Nayan R Kothari from Gujrat & CA. Akesh

Vyas from New Delhi were the eminent speakers of the programme.

8. Half Day Seminar on "NPA, Agriculture loan & UDIN in Bank Audit" ( 30.3.2019-3CPE)

Jaipur Branch of CIRC of ICAI organized Half Day Seminar on "NPA, Agriculture loan & UDIN in

Bank Audit" on 30th March, 2019 at ICAI Bhawan, Jaipur. CA. Ajay Atolia was the eminent

Speaker for the seminar.

Designed & Compiled by : ITT Faculties of Jaipur Branch of ICAI

Sanjay Kishore Karni Singh Rathore

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Indian Valuation Standards- vis a vis Indian Accounting Standards

Standardization of Valuation Process in India

By CA Harsha Ramnani

Extract:

he Institute of Chartered Accountants of India has notified the Indian Valuation

Standards (Ind VS). These Standards are effective for the valuation reports issued

on or after 1st July, 2018. This has been necessitated amid increasing need of

standardizing the practices, principles and procedures followed by valuation

professionals supported by Valuation Standards, Guidance Notes, Interpretations

and other technical matters. These Valuation Standards will be applicable for all

valuations under the Companies Act, 2013 mandatorily. In respect of valuations

under any other Act, these Standards are recommendatory.

Introduction

The importance of valuation and its recognition in the financial world in situations of buyout,

mergers or insolvency is increasing in the Indian economy. With the Insolvency and Bankruptcy

code fully functional, the importance of valuation has become noticeable.

Valuers will have to mandatorily comply with the Ind VS for valuation engagements required

under the Companies Act, 2013 (“Companies Act”). However, the applicability of the same is

recommendatory in case valuations done in accordance with other statutes like Income tax,

FEMA, SEBI etc.

The Ind VSs are in conformity with the provisions of the applicable laws, customs and usages in

India. However, if any deviation exists, the provisions of the law will prevail and the valuation

report should be prepared in conformity with such law.

Companies Act 2013 and Rules on Valuation:

As per section 247 of the Companies Act, only registered valuers can carry out valuation under

Companies Act. Subsequently, separate rules were also issued, called the Companies

(Registered Valuers and Valuation) Rules, 2017 (“Valuation Rules”), which provide for the

eligibility conditions, registration requirements etc. for Registered Valuers.

As per the Valuation Rules, a transition time till 31st March, 2018 was allowed to the valuers to

get themselves registered under the Act. This time period was however extended till 30th

September, 2018 vide a notification dated 9th February, 2018.

T

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Indian Valuation Standards:

The ICAI has notified 8 valuations standards and the some of them draw parallels from

the International Valuation Standards. The standards issued by the ICAI and their

corresponding global standard have been presented below:

Indian Valuation Standard International Valuation Standard

Ind VS 101 Definitions No corresponding standard

Ind VS 102 Valuation Bases IVS 104 Bases of Value

Ind VS 103

Valuation Approaches and

Methods IVS 105 Valuation Approaches

Ind VS 201

Scope of Work, Analyses and

Evaluation IVS 101 Scope of Work

Ind VS 202 Reporting and Documentation IVS 103 Reporting

Ind VS 301 Business Valuation IVS 200

Business and Business

Interest

Ind VS 302 Intangible Assets IVS 210 Intangible Assets

Ind VS 303 Financial Instruments IVS 500 Financial Instruments

Ind AS 113, Fair Value Measurement

Ind AS 113 sets out a single framework for measuring fair value as well as the disclosures

about fair value measurements to be made in the financial statements prepared and presented

under the Ind AS framework.

Ind AS 113 is a notified accounting standard under the 2013 Act and hence to be applied by

entities covered under Ind AS road map. The standard provides that the term ‘fair value’ is a

market-based measurement and not an entity-specific measurement

Key Takeaways of the Ind-VS with comparison to Ind AS: This article focuses to

provide an overview on significant aspects of Ind VS and also highlights key differences

between Ind VS and Ind AS.

Ind VS 101- Definitions

The Ind VS 101 provides definitions and principles which a Valuer should refer while

undertaking a valuation engagement. The definitions enunciated in this standard shall guide and

form the basis for certain terms used in other Ind VS.

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However, these definitions do not apply to valuations where a Valuer is required to use a

definition prescribed by any law, regulations, rules or directions of any government or

regulatory authority.

Some of the definitions from Ind AS 113 – Fair Value Measurement have been retained here as

well, with some modifications in certain cases. The ones which have been are - “Active market”,

“Fair Value”, “Cost Approach”, “Income Approach”, “Highest and Best Use”, “Market Approach”,

“Market Participants”, “Observable inputs”, “Orderly transactions”, “Unobservable inputs”.

In addition to the aforesaid, there have been some new additions as well.

Ind VS 102- Valuation Bases

The objective of Ind VS 102 is to define the major valuation bases and prescribe the

corresponding fundamental assumptions on which such valuation will be based and provides

the premises of values.

There are three valuation bases available in this Ind VS and it clarifies that valuation base

selected by a valuer should be appropriate in relation to the purpose of an engagement and the

terms of the engagement. The following are the three valuation bases:

Fair value means the price that would be received to sell an asset or paid to transfer a liability

in an orderly transaction between market participants at the valuation date.

Participant specific value is the estimated value of an asset or liability after considering the

advantages and disadvantages that may arises to the owner, identified participant or identified

acquirer.

Liquidation value: Liquidation value is the amount that will be realized on sale of an asset or

a group of assets when an actual/hypothetical termination of the business is

contemplated/assumed.

It also defines the Premise of value which refers to the logic behind the current and future use

of the asset. There may be a situation where more than one premise of value be applied. IVS

102 provides that a Valuer can choose one or more than one premise of value depending on the

selection of valuation bases. The Ind VS provides a list of common premises of value. These

are as follows:

o Highest and best use

o Going concern value

o As is where is value

o Orderly liquidation

o Forced transaction.

Comparison with Ind AS 113

Ind AS 113 provides a framework for measuring fair value of certain assets and

liabilities under Ind AS for preparation of financial statements.

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On the other hand, Ind VS 102 defines three valuation bases (including fair value) to

measure a value which could be fair value, participant specific value or liquidation value.

Therefore, Ind VS are expected to apply to many more situations than just for

preparation of financial statements.

Ind VS 103- Valuation Approaches and Methods:

This Standard provides guidance on approaches and methods for valuing an asset. The three

main approaches of valuation as provided by Ind VS 103 are:

Market approach,

Income approach and

Cost approach.

Some of the valuation methods given in this Standard are discounted cash flow method, market

price method, comparable companies multiple method, relief from royalty method, replacement

cost method and reproduction cost method, etc.

According to the Ind VS, a valuer would be responsible to select the appropriate valuation

approach(es) and methods as there may not be a single approach/method that would be best

suited for valuation in every situation. Selection of appropriate approach and methods by a

valuer should be based on valuation bases and premises of value. Also, some of the key factors

that a Valuer shall consider while determining the appropriateness of a specific valuation

approach and method are:

(a) Nature of asset to be valued;

(b) Availability of adequate inputs or information and its reliability;

(c) Strengths and weakness of each valuation approach and method; and

(d) Valuation approach/method considered by market participants.

Additionally, the valuation approaches and methods should be selected in a manner which

would maximise the use of relevant observable inputs and minimise the use of unobservable

inputs. The price information gathered from an active market is generally considered to be a

strong indicator of value.

However, Ind VS 103 states that if the Valuer is required to adopt valuation bases that are

prescribed by a statute or regulation then in such cases, the prescribed base shall apply and the

Valuer shall adopt specific methods or formulae as have been laid down under the statute or

regulation.

Comparison with IND-AS 113

Like Ind VS, Ind AS 113 also elaborates on the three approaches of valuation i.e. market

approach, income approach and cost approach. However, Ind AS 113 does not provide a list of

commonly used valuation methods as explained in Ind VS 103.

Ind VS 201- Scope of Work, Analyses and Evaluation

Ind VS 201 provides guidance on the responsibilities of the Valuer and provides as a guidance on

how a Valuer should determine its scope of work & responsibilities under an engagement of

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valuation and extent of analyses and evaluations required. Also terms and conditions of an

engagement must be clear to avoid any misunderstanding between a Valuer and a client.

A Valuer should make analyses and evaluations through discussions, surveys, inspections and

various calculations, etc. and the extent of such analyses and evaluation depends on the terms

and purpose of the engagement.

Ind VS 201 also provides as a guidance on to what extent a Valuer should place reliance on the

work of an expert and the responsibilities of the Valuer while using work of other experts.

While relying on information available for an asset to be valued, Ind VS 201 lists out the type of

information required to reach to a valuation conclusion such as:

(a) non-financial information;

(b) ownership details;

(c) financial information; and

(d) general information

Ind VS 202- Valuation Report and Documentation

Ind VS 202 prescribes significant elements and minimum contents of a valuation report, basis

for preparation of a valuation report and provides guidance on sufficient and appropriate

documentation of the engagement.

The form and content of the valuation report shall depend upon the nature of engagement and

the purpose of valuation.

A Valuer shall at a minimum include the following in the valuation report:

(a) background information of the asset being valued;

(b) purpose of the valuation and appointing authority;

(c) the identity of the Valuer and any other experts involved in the valuation;

(d) disclosure of the Valuer’s interest or conflict, if any;

(e) date of appointment, valuation date and date of the valuation report;

(f) inspections and/or investigations undertaken;

(g) nature and sources of the information used or relied upon;

(h) procedures adopted in carrying out valuation and valuation standards followed;

(i) valuation methodology used;

(j) restrictions on use of the valuation report, if any;

(k) major factors that were taken into account during the valuation;

(l) conclusion; and

(m) caveats, limitation and disclaimers to the extent they explain or elucidate the limitations

faced by Valuer, which shall not be for the purpose of limiting his responsibility for the

valuation report.

A Valuer should document the methods & procedures adopted for valuation, relevant evidences

obtained, its observations based on those evidences and management representations.

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Ind VS 301- Business Valuation

Ind VS 301 is applied for valuation of an entire business enterprise for various purposes

such as acquisitions, mergers, leveraged buyouts, initial public offerings, employee stock

ownership plans and other share-based plans, partner and shareholder buy-ins or buy-

outs, and stock redemptions or valuation under Insolvency and Bankruptcy Code to name

a few. According to Ind VS 301, the methodology required to be applied by a Valuer in

valuing an entire business enterprise presented below:

1. Defining the premise of the value in accordance with Ind VS 102;

2. Analysis of the business to be valued and collection of relevant information in

accordance with Ind VS 201;

3. Identification of the adjustments required to be made, if any, to the information collected

in the last step for the valuation;

4. Selection of valuation approach and method in accordance with Ind VS 103;

5. Calculation of value or range of values as per approach & method selected in the last

step; and

6. Identification of subsequent events and their adjustments to the determined value, if any.

This Ind-VS also explains the treatment of non-operating assets and intercompany investment.

Comparison with Ind AS 103, Business Combinations and Ind AS 113

Under Ind AS, Ind AS 103 provides guidance on the valuation and accounting of business

combinations (acquisition accounting) and requires fair value measurement of the following:

Consideration transferred, including deferred consideration and contingent consideration

The gain or loss on the effective settlement of a non-contractual pre-existing relationship

Assets acquired and liabilities assumed,

Ordinary non controlling interest that the acquirer chooese to measure at fair value and

The non controlling equity interest in the acquiree before obtaining control in a business

combination achieved in stages,

The principles in Ind AS 113 provide general guidance in measuring fair values in the context of

acquisition accounting. Ind VS on business valuation covers many more situations than just

business combinations and therefore, has a wider scope.

Ind VS 302- Intangible Asset

Ind VS 302 provides specific guidance on valuation of an intangible asset including goodwill,

brand value, license etc. which are not covered by any other standard. It lays down significant

considerations for the valuation of intangible assets e.g. to determine the purpose and objective

of the overall valuation assignment, consideration of the legal rights of the intangible asset to be

valued, evaluation of the highest and best use considerations, etc. Ind VS 302 lists out an

inclusive categorisation of Intangible assets which are:

a. Customer-based intangible assets;

b. Marketing-based intangible assets;

c. Contract-based intangible assets;

d. Technology-based intangible assets; or

e. Artistic-based intangible assets

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Ind VS 302 provides that the similar valuation approaches as enunciated in Ind VS 103

Valuation approaches and Methods apply to the valuation of intangible assets. The

valuation methods are based on whether the intangible assets are internally generated or

externally acquired.

One of the methods under income approach viz. “With and without method” requires the

value of the intangible asset to be valued being equal to the present value of the difference

between the projected cash flows over the remaining useful life of the asset under the following

two scenarios :

(a) business with all assets in place including the intangible asset to be valued; and

(b) business with all assets in place except the intangible asset to be valued.

Other methods which come under the income approach relevant for valuation of intangible

assets are greenfield method, distributor method, reproduction cost method and replacement

cost method, etc.

Comparison with Ind AS 38, Intangible Assets

Ind AS 38 provides guidance regarding recognition and measurement of intangible assets. Ind

AS 103 provides guidance on intangible assets acquired in a business combination i.e. at fair

value. A separately acquired intangible asset is recognised at either cash paid or at the fair

value of any other consideration given.

Additionally, under Ind AS 38, an entity cannot adopt revaluation model for an intangible asset

that does not have an active market.

Ind VS 302 is wider in scope and considers various situations for valuation of intangible assets

and accordingly, has elaborated on various valuation methodologies.

Ind-VS 303- Financial Instruments

Ind-VS 303 is applied for valuation of financial instruments viz. financial assets, financial

liabilities and equity instruments.

The requirement of valuation of financial instrument arise in cases of transactional pricing i.e. to

buy or sell the financial instrument and majorly for financial reporting purposes.

In selection of the approach and method, a valuer is required to give due consideration to the

control environment under which the entity and the instrument operates. The use of market

linked methods with observable inputs is usually the preferred approach to arrive at a value

since financial instruments are generally aligned to market linked factors. Factors to be

considered while determining the valuation method include:

The valuation base and terms and conditions of the instrument being valued

The purpose of valuation

The control framework (environment)

Input data sets, and

Other considerations.

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The standard recognises the importance of adjustment of credit risk in valuing a financial

instrument hence provides certain factors required to be considered such as Counterparty

risk, Capital leveraging, Security hierarchy, Collateral and default protection, History of

defaults and Offsetting:

Generally, valuers should use market observable data, however, in the absence of such data,

they may use unobservable inputs. While doing so, the Valuer should provide consideration for

control environment consisting of the governance and control procedures that are set in place

by an entity with the objective of increasing the reliance on the valuation process and

conclusion.

Comparison with Ind AS 109, Financial Instruments read with Ind AS 113

Ind AS requires financial instruments to be fair valued. While, Ind VS does not mention that fair

value to be the only method of valuation. Additionally, Ind AS 113 provides specific guidance on

valuation of liabilities and entity’s own equity instruments, valuation of financial liabilities with

demand feature, valuation of financial assets and financial liabilities with offsetting positions in

market risk or counterparty risk. This guidance is not specifically available in Ind VS 303.

To Conclude:

Valuation field is gaining importance now and is considered as one of the most critical areas in

professional practice and plays a key role in many areas such as buy/ sell, solvency, merger

and acquisition. It also plays an important role in the Insolvency Resolution regime where

Liquidation value has to be ascertained by Resolution professional through the Registered

Valuers.

The recent developments in the valuation spectrum by the Government and Regulatory Bodies

show that it is envisioned to regulate the valuation process as a professional practice. The Ind

VS, the Valuation Rules, both are intended for setting up benchmarks for ensuring uniformity in

the valuation practices adopted by various professionals in India.

Also the scope of application of Ind-VS is much wider than Indian Accounting Standards &

Accounting Standards under Companies (Accounting Standards) Rules, 2006. Set of AS & Ind-

AS requires valuation from the perspective of financial reporting only.

Also, the Standards will provide a benchmark to the professionals to ensure uniformity in

approach and quality of valuation output.

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