For Reporting and Compliance
For Reporting and Compliance
Financial Reporting Valuations (Ind AS / IFRS)
Common valuation requirements under Ind AS / IFRS include:
Ind AS 113 / IFRS 13 – Fair Value Measurement
It defines how fair value for assets, liabilities and equity instruments should be determined using a market-based approach. Used in multiple standards wherever “fair value” is referenced.
Ind AS 36 / IAS 36 – Impairment of Assets
There is a need to test whether the carrying amount of assets or cash generating units (CGUs) exceeds their recoverable amount. Appraisal determines the recoverable value using discounted cash flows or other accepted methods.
Ind AS 103 / IFRS 3 – Business Combinations
Purchase Price Allocation (PPA) is required - this involves distributing the acquisition consideration among identifiable assets, liabilities, and goodwill at their fair value.
Ind AS 102 / IFRS 2 – Share-Based Payments
Valuation of ESOPs (Employee Stock Option Plans) or other equity-based compensation using models such as Black-Scholes or Monte Carlo.
Ind AS 109 / IFRS 9 – Financial Instruments
Appropriate pricing is required for derivatives, convertible instruments and other financial assets or liabilities.
Ind AS 38 / IAS 38 – Intangible Assets
Valuation for internally generated or acquired intangibles such as patents, trademarks, or goodwill is required for financial reporting and impairment testing.
Regulatory Valuations
Companies Act, 2013
- Valuation by a registered valuer is mandatory (under section 247).
- Required for activities like issue of shares, merger, demerger, preferential allotment and transfer of shares.
- Ensures fairness and protects shareholder interests during corporate operations.
FEMA (Foreign Exchange Management Act, 1999)
- Valuation required for issuing or transferring shares between residents and non-residents.
- Valuation should follow internationally accepted pricing methods on an arm's length basis (as per RBI and FEMA guidelines).
- Commonly used for inbound/outbound investment, FDI, or cross-border transactions.
Income Tax Act, 1961
- Valuation is required to determine fair market value (FMV) for taxation purposes under rules such as Rule 11UA/11UAA.
- This is applicable to share transfers, issuance of shares at a premium to ensure that there is no undervaluation or excess in value.
SEBI Regulations
- Valuations are required under various SEBI frameworks, such as Issue of Capital and Disclosure Requirements (ICDR), Takeover Code, and Delisting Regulations.
- Ensures fairness in pricing for public shareholders, investor protection, and compliance with capital market norms.
Insolvency and Bankruptcy Code (IBC), 2016
- Valuation is mandatory during the Corporate Insolvency Resolution Process (CIRP) and liquidation.
- Conducted by Registered Valuer appointed by Resolution Professional (RP).
- Helps in determining the fair value and liquidation value of the assets of the corporate debtor for resolution and distribution purposes.
Our Process
- Know the reporting requirements and standards.
- Check financial and operational information.
- Use relevant methodology of valuation.
- Produce compliant valuation report, which is audit ready.
Why Choose Ascend Valuations?
- Cross-industry registered Valuers.
- Compliance approach based on ICAI and IVS standards.
- Clear, auditable records.
- Transparent, data-informed insights for executive decision-making.
