International Journal of Social Science Research (IJSSR)

Compliance with Fair Value Disclosure Requirements under Ind AS 113: Evidence from Listed Information Technology Companies in India

Information is essential in business; without it, no one can make any decisions. Especially, business information plays a vital role in stakeholders' decisions. Annual Financial statements are the primary source of information; all stakeholders review them, particularly the balance sheets and income statements. If that information needs to be accurate, one must use the best valuation method to value assets and liabilities. Therefore, fair value became the standard for valuing assets and liabilities, necessitating the disclosure of all information related to the fair value valuation process, including the inputs used and sensitivity analysis. The study examines compliance with the fair value disclosure requirements set out in Ind AS 113. The research used an Index and a binary scoring methodology (0 and 1) to assess compliance. The study found that not all fair value disclosure requirements are complied with by the sample companies; there is variation in compliance levels, with an average of 69% compliance among information technology companies. The research concludes that the compliance level of fair value disclosure depends on a company's accounting policy, the types of assets and liabilities, and market availability.