• Nagendra Kumar M.V.
• Dr. D.Rabindranath Solomon

Ensuring reliability and comparability of fair value measurements is challenging. To overcome the challenge of improving reliability and comparability, and also to provide a conceptual basis for measurement of fair value of an asset or liability, the international standard setting bodies Financial Accounting Standards Board (FASB), and the International Accounting Standards Board (IASB) prescribed the accounting standards, Accounting Standard Code (ASC) 820, Fair Value Measurement by FASB, and the International Financial Reporting Standard (IFRS) 13, Fair Value Measurement. On the similar lines, the Institute of Chartered Accountants of India (ICAI) also prescribed an accounting standard, Indian Accounting Standard (Ind AS) 113, Fair Value Measurement. To solve the measurement challenges and to ensure reliability and comparability of the fair value information a framework in the form of fair value hierarchy has been commonly proposed in all the above three accounting standards. However, the reliability and comparability of the fair value remains varied depending on the level of inputs applicable under the fair value hierarchy. Going above each level of fair value hierarchy, the complexity of fair value measurement increases, and the reliability decreases. And therefore to ensure reliability and comparability of the fair value information, sufficient disclosures have to be provided under each level of fair value hierarchy. In comparison with level 1 and level 2 inputs, the level 3 inputs requires additional information in the form of additional disclosures. In the present study using a disclosure index, Fair Value Accounting and Reporting (FVAR) index the process of fair value accounting and reporting for the equity investments has been quantified and evaluated for the selected set of companies from the NIFTY50 of National Stock Exchange (NSE) in India. It was observed that the fair value accounting and reporting process is not similar and is varied in terms of complexity in valuation and reporting for the Equity Investments across different organizations from different industries. The evidences also indicates the difficulty of ensuring reliability and comparability of fair value information for equity investments with the increase in the level of fair value hierarchy. Especially for unquoted level 3 measurements. Hence there was need to focus on providing sufficient disclosures for level 3 measurements to ensure the reliability and comparability of fair value measurements.

Ind AS 113, Fair Value Measurement, Fair Value Hierarchy, Level 1 Inputs, Level 2 Inputs, Level 3 Inputs, Reliability, Comparability, Disclosure Index

"Reliability and Comparability of Fair Value Measurements – An Analytical Study of Equity Investments of the Selected Indian Companies using Disclosure Index", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.10, Issue 9, page no.d798-d812, September-2023, Available :http://www.jetir.org/papers/JETIR2309388.pdf

"Reliability and Comparability of Fair Value Measurements – An Analytical Study of Equity Investments of the Selected Indian Companies using Disclosure Index", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.10, Issue 9, page no. ppd798-d812, September-2023, Available at : http://www.jetir.org/papers/JETIR2309388.pdf