Principal Market Vs. Most Advantageous Market? – Fair Value

Fair Values are being used as one of the measurement requirements to recognize certain transactions/ Assets/ Liabilities as required by respective Accounting Standards (i.e. Ind-As).

With a few scope exceptions, whenever there is a need to Fair Value any element of a Financial Statements, one has to look at Ind-As 113- “Fair Value Measurement” and its related requirements.

Now,

One can understand that how important the Standard is, as the Fair Value concept is used very commonly across various standards and one has to refer this standard to calculate such fair values as per its defined methodology.

The Article is mainly focused on some important terminology that is being used and often our readers request to provide more insight on these specific terms, hence we would be focusing on the mentioned terms only.

Let’s have a standard reference on the “Principal Market & Most Advantageous Market” and subsequently we will discuss its practical use by using some examples-

for further read please use the link -http://gyanifrs.com/2017/04/principal-market-vs-most-advantageous-market-fair-value/

******************************************************************************************************************************************************************