Valuation Under Ind-AS and IFRS in India
Audit-Ready Fair Value Reports for PPA, Impairment Testing, Financial Instruments, ESOP and First-Time Adoption
Ind-AS changes how every asset, liability, and financial instrument on your balance sheet is measured. Fair value is now the baseline for acquisitions, annual reporting, instrument classification, ESOP accounting, and impairment testing at every reporting cycle.
At Biz Valuations, we deliver independent, IBBI Registered Valuer-certified fair value reports built to satisfy Big 4 audit standards, clear SEBI and MCA scrutiny, and give your finance team clean, defensible sign-offs every time.
Trusted Across 3,500+ ProjectsInd-AS ValuationIFRS ValuationPPA Impairment TestingFair ValueFinancial InstrumentsESOP ValuationECL ModellingIBBI Registered Valuer
Ind-AS and IFRS Valuation Experts in India
Biz Valuations is an IBBI Registered Valuer and Category-I Merchant Banker with over 15 years of experience delivering fair value reports across every Ind-AS standard that triggers a valuation requirement. Led by Saurobh Barick, we bring expertise across PPA, impairment testing, compound instrument bifurcation, ESOP accounting, ECL modelling, and first-time adoption. Our reports are accepted by statutory auditors, audit committees, SEBI, and MCA across 35+ industries in India.
We also support cross-border valuations, transaction advisory, regulatory compliance, and complex financial modeling tailored to evolving corporate reporting and strategic decision-making needs for clients globally.
Our Specialized Ind-AS Valuation Solutions
First-Time Adoption
(Ind-AS 101)
Opening balance sheet fair value across all assets and liabilities on the transition date. Adjustments flow directly to retained earnings, making this a critical exercise for your opening equity position.
Business Combinations and PPA (Ind-AS 103)
Identifying and fair valuing all acquired intangible assets, contingent liabilities, and residual goodwill at the acquisition date. Mandatory for every acquisition that qualifies as a business combination.
Impairment Testing
(Ind-AS 36 and 38)
Annual and trigger-based impairment assessments for goodwill, indefinite-life intangibles, and CGU-level recoverable amounts. Mandatory even when no visible impairment indicators exist.
Financial Instruments
(Ind-AS 109)
Fair value of equity investments, debt instruments, compound instruments, derivatives, and embedded features for FVTPL and FVOCI classification.
Expected Credit Loss Modelling
(Ind-AS 109)
Forward-looking ECL models for loan books, trade receivables, and financial assets. Covers Probability of Default, Loss Given Default, and Exposure at Default for Ind-AS 109 compliance.
Share-Based Payments and ESOP (Ind-AS 102)
Grant-date and modification-date fair value for equity-settled and cash-settled arrangements using Black-Scholes, Binomial, and Monte Carlo models.
Property and Investment Assets
(Ind-AS 16 and 40)
Independent revaluation of Property, Plant and Equipment and periodic fair value remeasurement of investment property at each reporting date.
Biological Asset Valuation (Ind-AS 41)
Fair value of living animals and plants for agriculture, plantation, and food processing companies. Ind-AS 41 requires biological assets to be measured at fair value less costs to sell at each reporting date.
Compound Financial Instrument Bifurcation Under Ind-AS 109
Value the Liability Component First
The debt portion is valued using Discounted Cash Flow or FIMMDA-based Yield to Maturity for unquoted instruments, as required under Ind-AS 32.
Derive the Equity Component
The equity component equals the total fair value of the instrument minus the liability component. Recognized directly in equity and not remeasured after initial recognition.
Identify Embedded Derivatives
Conversion options, put and call features, separated and measured using Black-Scholes or Binomial models through profit and loss at each reporting date.
Auditor-Ready Documentation
Full bifurcation workings with FIMMDA-sourced benchmarks, volatility inputs, and hierarchy classification included in every report for statutory auditor review.
Impairment Testing Under Ind-AS 36 and 38
Purchase Price Allocation Under Ind-AS 103
- Pre-Acquisition Analysis : Before the deal closes, we assess the fair value impact on earnings, estimating amortization charges, goodwill quantum, and EPS effect so your team can structure acquisition accounting before Day 1.
- Contingent Consideration and Earn-Outs : Fair value of deferred or contingent payment obligations using probability-weighted and Monte Carlo approaches, remeasured at each reporting date through profit and loss per Ind-AS 103.
- Intangible Asset Identification and Valuation: We identify all acquired intangibles not previously on the seller's balance sheet, brands, customer relationships, technology, patents, and non-competes and value each using MPEEM, Relief from Royalty, and With-and-Without methods.
- Goodwill and Bargain Purchase Assessment: Residual goodwill computation after allocating fair value to all identifiable net assets. Where purchase price is below net asset fair value, we test for and document a bargain purchase gain.
What is Ind-AS Valuation?
Ind-AS Valuation is the independent measurement of fair value for assets, liabilities, and financial instruments under Indian Accounting Standards. Unlike historical cost accounting under Indian GAAP, Ind-AS requires market-based fair value as defined under Ind-AS 113, reflecting the price a market participant would receive or pay on the measurement date.
Ind-AS fair value is not a one-time transition exercise. It creates recurring valuation obligations across purchase price allocation, financial instrument classification, impairment testing, ESOP accounting, and asset revaluation, making it a core part of every reporting cycle, not just a one-off compliance requirement.
The Challenge Every Ind-AS Finance Team Faces
- The Audit Qualification Risk: A single unsupported input, wrong hierarchy classification, or missing bifurcation triggers auditor queries, delayed signoffs, and requests for external review, costing time and credibility at every reporting cycle.
- The Restatement Risk: Wrong methodology selection or inconsistent assumptions between periods can lead to financial restatements. Once restated, auditors scrutinize future reports far more closely.
- The Inter-Standard Contradiction: Ind-AS 103, 109, 36, 102, and 101 all use fair value but in different contexts. Inconsistent discount rates or assumptions across standards create contradictions that regulators and auditors immediately flag.
- The Biz Valuations Solution: We deliver Ind-AS valuations consistent across every applicable standard, aligned with the Ind-AS 113 hierarchy, documented to Big 4 standards, and signed by an IBBI Registered Valuer. Giving your finance team a clean, defensible reporting cycle every time.
Indian GAAP vs Ind-AS: What Changes for Valuation
| Indian GAAP | Ind-AS | |
|---|---|---|
| Measurement basis | Historical cost | Fair value at each reporting date |
| Financial instruments | Valued at cost or face value | FVTPL, FVOCI, or amortized cost |
| Goodwill | Amortized over time | Tested annually for impairment |
| Intangible assets | Often not separately recognized | Identified and valued separately in PPA |
| Compound instruments | Treated as a single item | Bifurcated into debt and equity |
| ESOP accounting | Not always recognized as expense | Mandatory fair value expense recognition |
| Investment property | Carried at cost | Fair value disclosed at each reporting date |
| First-time adoption | Not applicable | Fair value exercise on transition date |
Expert Ind-AS Valuation Services
Valuation uncertainty should never be the reason a transaction stalls or a board faces regulatory risk. Partner with Biz Valuations for precise, compliant, and defensible Ind-AS valuations.
Indian GAAP vs Ind-AS: What Changes for Valuation
Ind-AS 113 requires every fair value measurement to be classified into one of three levels based on the observability of inputs used. The level must be disclosed in your financial statements.
When Do You Need Ind-AS Valuation?
Who Needs Ind-AS Valuation?
CFOs and Finance Heads of Listed Companies
For mandatory fair value disclosures across financial instruments, investment property, and post-acquisition intangibles with full audit committee documentation at every reporting cycle.
Large Unlisted Companies and MNC Subsidiaries
For Ind-AS compliance on crossing net worth thresholds, IFRS reporting to foreign parent companies, and opening balance sheet preparation for first-time adoption.
Statutory Auditors and Audit Committees
For independent third-party fair value opinions that validate management's Ind-AS disclosures and support audit sign-off without further information requests.
M&A and Transaction Advisory Teams
For purchase price allocation and financial instrument fair values required in post-acquisition Ind-AS reporting under Ind-AS 103 and 109 compliance purposes only.
PE and VC-Backed Companies
For ESOP fair value under Ind-AS 102, compound instrument bifurcation for CCPS and CCDs, and Ind-AS adoption support on crossing the applicability threshold.
Holding Companies and SPVs
For compound instrument bifurcation across convertible debentures, preference shares, and embedded derivatives at each reporting date for fair value measurement.
Benefits of Professional Ind-AS Valuation Services
Valuation Approaches and Methodologies
- Market Approach: Quoted market prices, comparable transaction multiples, and matrix pricing for debt instruments. Used for Level 1 and Level 2 inputs where observable market data is available.
- Income Approach: DCF, MPEEM, Relief from Royalty, and With-and-Without methods. The primary methodology for Level 3 inputs including intangible assets, unlisted instruments, and goodwill impairment.
- Cost Approach: Replacement cost for specialized PPE and tangible assets where income-based methods cannot be applied.
- Complex Models: Black-Scholes, Binomial, and Monte Carlo simulation for ESOP and derivative valuations. FIMMDA-based Yield to Maturity for unquoted debentures and compound instrument bifurcation.
- ECL Models: Probability of Default, Loss Given Default, and Exposure at Default frameworks for Expected Credit Loss computation under Ind-AS 109.
Regulatory Framework for Ind-AS Valuation
Our Ind-AS Valuation Process
1
Engagement
Scoping
We identify every applicable Ind-AS standard, the triggering event, the measurement date, the fair value hierarchy level, and the reporting timeline before any work begins.
2
Data Collection and
Analysis
We collect financial statements, acquisition agreements, instrument term sheets, FIMMDA benchmarks, and operational information relevant to each asset class.
3
Hierarchy Classification and Methodology Selection
We determine the correct hierarchy level under Ind-AS 113 and select the right valuation approach and financial valuation model for each asset and liability class.
4
Modelling and Management Validation
We build valuation models, run sensitivity analysis, and validate key assumptions including discount rates, growth projections, and volatility inputs with your finance team.
5
Final Report
Delivery
We deliver a signed, audit-ready report with complete workings, hierarchy classification, methodology rationale, and an Ind-AS compliance certification statement.
Documents Required for Ind-AS Valuation
What You Receive: Valuation Report Contents
Executive Summary
Overview of the entity, valuation purpose, applicable Ind-AS standards, measurement date, and concluded fair values for each asset or liability class.
Key Assumptions and Caveats
Discount rates, growth rates, volatility inputs, and FIMMDA benchmarks, each sourced and justified with defined scope limitations clearly stated.
Methodology Rationale
Valuation approach and model justified per asset class and hierarchy level, with reference to Ind-AS 113 and IVS methodology requirements.
Standard and Hierarchy Classification
Identification of every applicable Ind-AS standard, the triggering event, and the fair value hierarchy level for each measurement with full disclosure documentation.
Detailed Financial Models and Workings
Every input, assumption, and output presented transparently, including DCF models, Black-Scholes outputs, FIMMDA benchmarks, bifurcation workings, and sensitivity tables.
Ind-AS Compliance Statement (Report)
A signed confirmation by our IBBI Registered Valuer that the report has been prepared in compliance with applicable Ind-AS standards and IVS methodology requirements.
Why Choose Biz Valuations?
- IBBI Registered Valuer and Category-I Merchant Banker: Our reports carry the highest available level of statutory credibility, accepted by Big 4 auditors, SEBI, MCA, and tax authorities without qualification.
- Cross-Standard Consistency: We ensure valuation inputs remain consistent across every applicable Ind-AS standard in your reporting cycle, preventing inter-standard contradictions.
- Full-Spectrum Ind-AS Coverage: From first-time adoption through annual impairment testing, ESOP accounting, compound instrument bifurcation, ECL modelling, and PPA, we cover every fair value obligation in a single engagement.
- 15+ Years Across 35+ Industries: A consistent track record delivering fair value reports for listed companies, large corporates, PE-backed entities, and MNC subsidiaries across India.
Our Clients
Serving 35+ Industries with Trusted Valuations
Where Our Expertise Is Applied
Conglomerates and Group Companies
Intra-group merger PPA, demerger fair value, cross-holding adjustments, and opening balance sheet valuations under Ind-AS 101.
NBFCs, Banks and Financial Services
Fair value of loan portfolios, compound instruments, derivative books, and ECL modelling under Ind-AS 109.
Pharmaceuticals, Healthcare and Life Sciences
Intangible asset valuation for R&D pipelines, in-licensing deals, and patents under Ind-AS 103 PPA.
Technology, SaaS and Digital Businesses
Fair value of customer relationships, developed technology, and platform intangibles using MPEEM and Royalty.
PE and VC-Backed
Companies
ESOP valuation under Ind-AS 102, CCPS and CCD bifurcation, and first-time adoption opening balance sheet preparation.
Manufacturing and Industrial Groups
PPA for acquisitions, PPE revaluation under Ind-AS 16, goodwill impairment testing, and CGU-level assessments.
Agriculture and Plantation Companies
Biological asset valuation under Ind-AS 41 for living animals, plants, and agricultural produce at fair value less costs to sell.
Know Your Worth, Grow Your Business.
Don't leave your business value to guess work. Whether you are negotiating a merger, planning an exit, or filing statutory returns, you need a number you can trust.
- Registered Valuer Reports
- Trusted Across 3,500+ Projects
- Cat-I Merchant Banker Valuation reports
- 409A Valuation reports certified by ABV®, ASA, CVA®, MRICS
Frequently Asked Questions
1What is Ind-AS Valuation?
It is the independent measurement of fair value for assets, liabilities, and financial instruments under Indian Accounting Standards. Required at initial recognition, each reporting date, or upon specific triggering events such as an acquisition, impairment indicator, or ESOP grant.
2Which companies must follow Ind-AS in India?
All listed companies regardless of net worth, unlisted companies with net worth of Rs. 250 crore or more, and NBFCs with net worth of Rs. 500 crore or more. Subsidiaries, associates, and joint ventures of covered companies must also comply, even if individually below the threshold.
3What is the Fair Value Hierarchy under Ind-AS 113?
Three levels: Level 1 uses quoted market prices. Level 2 uses observable inputs such as FIMMDA yield rates. Level 3 uses unobservable inputs requiring expert modelling and professional judgment. The level must be disclosed for each measurement in the financial statements.
4What is a compound financial instrument under Ind-AS 109?
Instruments such as CCDs, OCDs, and CCPS that contain both a debt component and an equity or derivative component. Each component must be bifurcated and measured separately. Failing to bifurcate overstates equity, understates liabilities, and triggers audit qualification.
5Why does first-time Ind-AS adoption require valuation?
Under Ind-AS 101, companies must prepare an opening balance sheet on the transition date with all assets and liabilities at fair value. Adjustments flow through retained earnings, making the quality of this valuation directly critical to your reported opening equity.
6What is the difference between Indian GAAP and Ind-AS for valuation?
Indian GAAP measured most assets at historical cost. Ind-AS requires market-based fair value updated at each reporting period, affecting how financial instruments, intangibles, PPE, goodwill, and ESOP arrangements are recognized, measured, and disclosed.
7Is an IBBI Registered Valuer required for Ind-AS valuations?
Yes. For all statutory Ind-AS valuations under the Companies Act, a report signed by an IBBI Registered Valuer is required. Statutory auditors also strongly prefer IBBI Registered Valuer reports for Level 3 fair value measurements.
8What is Value in Use under Ind-AS 36?
The present value of future cash flows expected from an asset or CGU, discounted using a pre-tax rate. Compared with Fair Value Less Costs of Disposal to determine the recoverable amount for impairment testing purposes.
9How long does an Ind-AS valuation engagement take?
Standard engagements such as a single ESOP grant or instrument bifurcation typically take 5 to 7 business days. Complex mandates such as first-time adoption or multi-standard PPA typically take 10 to 15 business days from receipt of complete data.
10Is the initial consultation free?
Yes. We offer a complimentary consultation to identify every applicable Ind-AS standard, assess the triggering event, and outline the right scope, methodology, and timeline for your engagement.
