At VSJC, we specialize in delivering accurate and reliable fair value measurement services that comply with a wide range of Indian Accounting Standards (Ind AS), International Financial Reporting Standards (IFRS / IAS), US Generally Accepted Accounting Practices (US GAAP / ASC) and regulatory requirements set by the Securities and Exchange Board of India (SEBI). Our expert team provides in-depth valuations essential for financial reporting, compliance, and strategic decision-making.

Our Services cover diverse valuation needs, including property, plant and equipment (PPE), financial instruments, investment properties and biological assets. We assist in the fair valuation of unlisted investments, impairment testing, share-based payments and lease accounting. Additionally our expertise extends to the valuation of plan assets for employee benefit schemes, government grants and intellectual property rights.

We are proficient in conducting annual and half-yearly valuations as mandated by SEBI regulations for infrastructure investments trusts, real estate investment trusts, and alternative investment funds. Our valuations support a variety of financial reporting and regulatory compliance requirements, ensuring that our clients meet all necessary standards with precision

Fair Value Measurement

IndAS 16 /IAS 16 / ASC 360 – Property, Plant, and Equipment, establishes the principles for the recognition, measurement, and depreciation of property, plant, and equipment (PPE). One of the key provisions under this standard is the revaluation model, which allows entities to carry PPE at a revalued amount, reflecting its fair value at the date of revaluation.

Key Aspects of Fair Valuation under IndAS 16 /IAS 16 / ASC 360:

  • Revaluation Model: Entities opting for the revaluation model must measure PPE at its fair value, determined based on market-based evidence, at the date of revaluation, less any subsequent accumulated depreciation and impairment losses.
  • Frequency of Revaluation: Revaluations should be performed with sufficient regularity to ensure that the carrying amount does not differ materially from the fair value at the balance sheet date.
  • Comprehensive Assessment: The fair value assessment involves a comprehensive evaluation of the asset’s condition, market conditions and comparable transactions, ensuring an accurate reflection of the asset’s worth.
  • Reporting and Disclosure: IndAS / IAS / ASC detailed disclosures about the revaluation, including the methods and significant assumptions used, the effective date of the revaluation and the carrying amount of revalued assets.

At VSJC, we provide expert revaluation services for PPE in compliance with Ind AS 16. Our team conducts thorough inspections and leverages market data to determine the fair value of your assets, ensuring accurate and up-to-date financial reporting.

Ind AS 19 / IAS 19 / ASC 715 – Employee Benefits, mandates the fair valuation of plan assets for employee benefit schemes. This standard ensures that companies accurately reflect the cost of providing employee benefits and the corresponding liabilities on their financial statements.

Key Aspects of Fair Valuation under Ind AS 19 / IAS 19 / ASC 715 :

  • Plan Assets Valuation: Fair valuation of plan assets is crucial for determining the funded status of employee benefits plans, such as pension schemes, gratuity, and other long-term employee benefits.
  • Actuarial Assumptions: Accurate valuations depend on robust actuarial assumptions, including discount rates, salary growth, and employee turnover rates, which must reflect current market conditions and best estimates.
  • Liability Measurement: The fair valuation of plan assets directly impacts the measurement of the company’s liabilities for defined benefit plans, ensuring that the financial statements present a true and fair view of the obligations.
  • Comprehensive Reporting: IndAS / IAS / ASC requires detailed disclosures about the valuation methods, assumptions used, and the financial impact of employee benefit plans on the company’s financial position and performance.

At VSJC, we offer specialized services to ensure compliance with Ind AS 19, providing precise valuations and comprehensive reports that meet regulatory standards. Our expert team leverages the latest actuarial techniques and market data to deliver accurate and reliable valuations of employee benefit plan assets.

IndAS 20 / IAS 20 /ASC 958-605 – Accounting for Government Grants and Disclosure of Government Assistance, provides guidelines for the recognition, measurement, and disclosure of government grants and assistance. One key aspect of this standard is the fair valuation of non-monetary grants received by entities.

Key Aspects of Fair Valuation under IndAS 20 / IAS 20 /ASC 958-605:

  • Non-Monetary: When entities receive non-monetary grants, such as land, buildings, or equipment, Ind AS 20 requires these assets to be recognized at fair value upon receipt.
  • Fair Value Determination: The fair value of non-monetary grants is determined based on market prices or, if market prices are not available, through valuation techniques that reflect the asset’s condition, location, and use.
  • Recognition and Measurement: Once the fair value is determined, the non-monetary grant is recognized in the financial statements as both an asset and a corresponding grant. This ensures that the financial impact of receiving the grant is accurately reflected.
  • Disclosure Requirements: IndAS / IAS / ASC mandates detailed disclosures about the nature and amount of government grants, the accounting policy adopted for grants, and any unfulfilled conditions or contingencies attached to the grants.

At VSJC, we specialize in providing precise fair valuations for non-monetary grants in accordance with Ind AS 20. Our team of experts uses the latest market data and valuation techniques to ensure that these assets are accurately valued, supporting transparent and compliant financial reporting.

IndAS 36 / IAS 36 / ASC 360 – Impairment of Assets, outlines the procedures that entities must follow to ensure that their assets are carried at no more than their recoverable amount. If an asset’s carrying amount exceeds its recoverable amount, the asset is considered impaired, and the entity must recognize an impairment loss.

Key Aspects of Fair Valuation under IndAS 36 / IAS 36 / ASC 360:

  • Recoverable Amount: The recoverable amount of an asset is the higher of its fair value less costs of disposal (FVLCOD) and its value in use (VIU). Fair valuation plays a crucial role in determining the FVLCOD.
  • Identification of Impairment Indicators: Entities must assess at each reporting date whether there is any indication that an asset may be impaired. If such indicators exist, a formal impairment test is required.
  • Fair Value Less Costs of Disposal (FVLCOD): This is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, less the costs of disposal. It involves:
    • Market-Based Evidence: Utilizing observable market data to determine fair value.
    • Valuation Techniques: Employing techniques such as comparable market transactions, discounted cash flow analysis, and cost approach when market prices are not directly available.
  • Impairment Loss Recognition: If the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognized in the profit and loss account.
  • Disclosure Requirements: Ind AS 36 requires entities to disclose information about the assumptions and valuation techniques used to determine recoverable amounts, the amount of impairment losses recognized or reversed, and the events leading to impairment.

At VSJC, we offer expert impairment testing services in compliance with Ind AS 36. Our team conducts thorough valuations to determine the fair value of your assets, ensuring that any impairment losses are accurately identified and reported.

IndAS 40 / IAS 40 / ASC 360 – Investment Property, sets out the requirements for the recognition, measurement, and disclosure of investment properties. Investment properties are defined as properties held to earn rentals or for capital appreciation, or both, rather than for use in the production or supply of goods or services or for administrative purposes.

Key Aspects of Fair Valuation under IndAS 40 / IAS 40 / ASC 360:

  • Initial Recognition: Investment properties should be initially recognized at cost, including transaction costs. If payment is deferred, the cost is the cash price equivalent.
  • Subsequent Measurement: Entities have the option to choose either the fair value model or the cost model for subsequent measurement. Under the fair value model, investment properties are measured at fair value, with changes in fair value recognized in profit or loss.
  • Fair Value Determination: The fair value of investment properties is determined based on current prices in an active market for similar properties in the same location and condition, and subject to similar lease and other contracts.
    • Market-Based Evidence: Utilizing observable market data to establish fair value.
    • Valuation Techniques: Applying techniques such as the income approach (discounted cash flow analysis), cost approach, and comparable market transactions when direct market prices are not available.
  • Disclosure Requirements: IndAS / IAS / ASC mandates detailed disclosures about the valuation method used, significant assumptions applied, and the extent to which fair value has been determined based on observable or unobservable inputs. It also requires disclosures about the reconciliation of carrying amounts and any restrictions on the realizability of investment properties or the remittance of income and proceeds of disposal.

At VSJC, we provide comprehensive fair valuation services for investment properties in accordance with Ind AS 40. Our expert team uses the latest market data and valuation techniques to ensure accurate and reliable valuations, supporting transparent and compliant financial reporting.

IndAS 41 / IAS 41 / ASC 905 – Agriculture, provides guidance on the accounting treatment and disclosure requirements for biological assets and agricultural produce. Biological assets include living plants or animals, while agricultural produce refers to the harvested product of these biological assets.

Key Aspects of Fair Valuation under IndAS 41 / IAS 41 / ASC 905 :

  • Initial Recognition: Biological assets should be initially recognized at fair value less costs to sell, unless the fair value cannot be measured reliably.
  • Subsequent Measurement: After initial recognition, biological assets are measured at fair value less costs to sell, with changes in fair value recognized in profit or loss. Agricultural produce harvested from biological assets is measured at fair value less costs to sell at the point of harvest.
  • Fair Value Determination: The fair value of biological assets and agricultural produce is determined based on current market prices in an active market, considering the condition and location of the assets.
    • Market-Based Evidence: Utilizing observable market data to establish fair value.
    • Valuation Techniques: Applying techniques such as the income approach (discounted cash flow analysis), cost approach, and comparable market transactions when direct market prices are not available.
  • Disclosure Requirements: IndAS / IAS /ASC mandates detailed disclosures about the methods and assumptions used to determine fair value, the nature and extent of biological assets, and any restrictions on the realizability of biological assets. It also requires disclosures about the reconciliation of changes in the carrying amount of biological assets.

At VSJC, we offer specialized fair valuation services for biological assets in compliance with Ind AS 41. Our team of experts utilizes the latest market data and valuation techniques to ensure accurate and reliable valuations, supporting transparent and compliant financial reporting.

IndAS 102 / IFRS 2 / ASC 718 – Share-Based Payment, outlines the accounting requirements for share-based payment transactions, including Employee Stock Option Plans (ESOPs). This standard ensures that entities recognize the cost of providing equity-based compensation to employees and other stakeholders in their financial statements.

Key Aspects of Fair Valuation under IndAS 102 / IFRS 2 / ASC 718:

  • Initial Recognition: Entities must measure the fair value of equity instruments granted (e.g., stock options) at the grant date. This fair value is recognized as an expense over the vesting period.
  • Valuation Techniques: The fair value of stock options is typically determined using option pricing models such as the Black-Scholes model or the binomial model. These models consider factors such as the exercise price, the current market price of the shares, the expected volatility, the option’s expected life, the risk-free interest rate, and expected dividends.
  • Performance Criteria: For ESOPs with performance criteria affecting the option price, the valuation must incorporate the probability of achieving these performance conditions. Performance criteria may include financial targets, stock price thresholds, or other specific metrics.
  • Measurement and Recognition: The fair value of ESOPs with performance conditions is recognized as an expense over the vesting period, adjusted for the likelihood of meeting the performance criteria.
  • Disclosure Requirements: IndAS / IFRS / ASC requires detailed disclosures about the nature and extent of share-based payment arrangements, including the number of options granted, exercised, and forfeited during the period. Additionally, entities must disclose the valuation method used, assumptions made, and the impact of share-based payments on the financial statements.

At VSJC, we provide expert fair valuation services for ESOPs in compliance with Ind AS 102. Our team leverages advanced valuation techniques and comprehensive market data to ensure accurate and reliable valuations, supporting transparent and compliant financial reporting.

IndAS 109 / IFRS 9 / ASC 320,326 – Financial Instruments, provides comprehensive guidelines for the recognition, measurement, and disclosure of financial instruments, including unlisted investments. The standard outlines how entities should classify and measure financial assets and liabilities, ensuring that their financial statements accurately reflect the value of these instruments.

Key Aspects of Fair Valuation under IndAS 109 / IFRS 9 / ASC 320,326:

  • Classification: Unlisted investments can be classified either as Fair Value Through Profit or Loss (FVTPL) or Fair Value Through Other Comprehensive Income (FVTOCI), depending on the business model for managing the financial assets and the contractual cash flow characteristics.
    • FVTPL: Financial assets classified as FVTPL are measured at fair value, with changes in fair value recognized in profit or loss.
    • FVTOCI: Financial assets classified as FVTOCI are measured at fair value, with changes in fair value recognized in other comprehensive income (OCI).
  • Fair Value Determination: The fair value of unlisted investments is determined based on market data and valuation techniques, as these investments do not have quoted market prices.
    • Market-Based Evidence: Utilizing comparable transactions and market data to estimate fair value.
    • Valuation Techniques: Applying techniques such as discounted cash flow (DCF) analysis, earnings multiples, and net asset value (NAV) approach when market prices are not directly available.
  • Measurement and Recognition: For unlisted investments classified as FVTPL or FVTOCI, fair value changes are measured and recognized at each reporting period, ensuring that the financial statements reflect the current market conditions and the investment’s fair value.
  • Disclosure Requirements: IndAS / IFRS / ASC requires detailed disclosures about the valuation methods and assumptions used, the classification of financial assets, and the impact of fair value changes on the financial statements.

At VSJC, we provide expert fair valuation services for unlisted investments in compliance with Ind AS 109. Our team utilizes advanced valuation techniques and comprehensive market data to deliver accurate and reliable valuations, supporting transparent and compliant financial reporting.

IndAS 116 / IFRS 16 / ASC 842 – Leases, provides comprehensive guidance on the accounting treatment of lease agreements. This standard requires lessees to recognize assets and liabilities for most leases on their balance sheets, ensuring that the financial implications of leasing arrangements are accurately reflected in financial statements.

Key Aspects of Fair Valuation under IndAS 116 / IFRS 16 / ASC 842:

  • Recognition of Right-of-Use Assets and Lease Liabilities: Lessees must recognize a right-of-use (ROU) asset and a corresponding lease liability at the commencement date of the lease. The lease liability is initially measured at the present value of lease payments to be made over the lease term.
  • Measurement of Lease Liabilities: The lease liability is measured using the interest rate implicit in the lease or, if that rate cannot be readily determined, the lessee’s incremental borrowing rate. The liability is subsequently measured at amortized cost, using the effective interest rate method.
  • Valuation of Right-of-Use Assets: The ROU asset is initially measured at cost, which includes the initial amount of the lease liability, any lease payments made at or before the commencement date, and any initial direct costs incurred. The ROU asset is subsequently measured at cost less accumulated depreciation and impairment losses.
  • Reassessment and Modification: Lessees must reassess the lease liability and adjust the ROU asset when there are changes in lease terms, such as modifications, changes in the lease term, or changes in the assessment of an option to purchase the underlying asset.
  • Disclosure Requirements: IndAS / IFRS / ASC mandates detailed disclosures about lease arrangements, including information about the amount, timing, and uncertainty of lease payments. Entities must disclose the carrying amount of ROU assets, lease liabilities, and the maturity analysis of lease liabilities.

At VSJC, we offer expert valuation services for leases in compliance with Ind AS 116. Our team ensures accurate measurement and reporting of lease liabilities and ROU assets, supporting transparent and compliant financial statements.

SEBI REITs and InvITs Regulation 21 – The Securities and Exchange Board of India (SEBI) has established detailed regulations for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to ensure transparency, governance, and investor protection. Regulation 21 under these regulations mandates systematic and regular valuation of REIT and InvIT assets to provide accurate and reliable information to investors and other stakeholders.

Key Aspects of Valuation under SEBI REITs and InvITs Regulation 21:

  • Annual Valuation: Regulation 21(4) requires that the assets of both REITs and InvITs be valued by a registered valuer at least once every financial year. This ensures that the financial statements present an up-to-date reflection of the market value of the assets.
  • Half-Yearly Valuation: Regulation 21(5) stipulates that for publicly listed REITs and InvITs, the valuation of the assets must be conducted on a half-yearly basis. This valuation must be carried out by a valuer and reviewed by another valuer, thereby enhancing the credibility and accuracy of the valuation process.
  • Detailed Valuation Reports: The valuation reports must include comprehensive assessments of the assets, covering key factors such as market conditions, asset performance, and any changes in asset value. These reports are essential for investors to make informed decisions.
  • Disclosure Requirements: Both REITs and InvITs must disclose the valuation reports to the stock exchanges and make them publicly available on their websites. This ensures transparency and builds investor confidence in the valuation process and the reported asset values.

At VSJC, we provide expert valuation services for both Real Estate Investment Trusts and Infrastructure Investment Trusts, ensuring compliance with SEBI regulations and supporting transparent and informed investment decisions.

SEBI AIFs Regulation 23 – The Securities and Exchange Board of India (SEBI) has instituted comprehensive regulations for Alternative Investment Funds (AIFs) to ensure transparency, governance, and investor protection. Regulation 23 under these regulations mandates systematic and regular valuation of the investments held by Category I and Category II AIFs to provide accurate and reliable information to investors and other stakeholders.

Key Aspects of Valuation under SEBI AIFs Regulation 23:

  • Periodic Valuation: Regulation 23 requires that the assets of Category I and Category II AIFs be valued by an independent valuer appointed by the AIF. The valuation must be carried out at least once every six months, ensuring that the financial statements reflect the current market value of the investments.
  • Valuation Methodology: The valuer must follow internationally accepted valuation principles and practices to determine the fair value of the investments. This includes using market-based evidence and appropriate valuation techniques such as discounted cash flow analysis, comparable market transactions, and net asset value methods.
  • Detailed Valuation Reports: The valuation reports must include comprehensive assessments of the investments, considering factors such as market conditions, asset performance, and any changes in the value of the investments. These reports are essential for investors to make informed decisions.
  • Disclosure Requirements: AIFs must disclose the valuation reports to their investors and include them in the financial statements. This ensures transparency and builds investor confidence in the valuation process and the reported asset values.

At VSJC, we provide expert valuation services for Category I and Category II Alternative Investment Funds, ensuring compliance with SEBI regulations and supporting transparent and informed investment decisions.

SEBI IPR Valuation Regulation 34 – The Securities and Exchange Board of India (SEBI) has established comprehensive regulations for share-based employee benefits and the issuance of sweat equity to ensure transparency and fairness. Regulation 34 under these regulations mandates the valuation of know-how, intellectual property rights (IPR), or value addition provided by employees, which forms the basis for granting sweat equity shares.

Key Aspects of Valuation under SEBI Regulation 34:

  • Valuation of Know-How and IPR: When a company issues sweat equity shares, it must determine the fair value of the know-how or intellectual property rights contributed by the employee. This valuation should reflect the true worth of the contributions in terms of their impact on the company’s performance and market position.
  • Valuation of Value Addition: In addition to know-how and IPR, the company must also assess the value addition brought by the employee. This includes evaluating the improvements, innovations, or strategic advantages provided by the employee that enhance the company’s value.
  • Independent Valuer: The valuation must be conducted by an independent valuer registered with SEBI. The valuer should use appropriate and accepted valuation methods to determine the fair value of the contributions.
    • Valuation Techniques: The valuer may use techniques such as discounted cash flow analysis, relief-from-royalty method, and cost approach to accurately assess the value of know-how, IPR, or value.
  • Detailed Valuation Reports: The valuation report must include a comprehensive assessment of the know-how, IPR, or value addition, detailing the methods and assumptions used in the valuation process. This report is crucial for justifying the issuance of sweat equity shares.
  • Disclosure Requirements: Companies must disclose the valuation reports to shareholders and regulatory authorities, ensuring transparency and building investor confidence in the equity issuance process.

At VSJC, we provide expert valuation services for know-how, intellectual property rights, and value addition in compliance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. Our valuations support transparent and fair issuance of sweat equity shares.

IndAS 16 /IAS 16 / ASC 360 – Revaluation of PPE

IndAS 16 /IAS 16 / ASC 360 – Property, Plant, and Equipment, establishes the principles for the recognition, measurement, and depreciation of property, plant, and equipment (PPE). One of the key provisions under this standard is the revaluation model, which allows entities to carry PPE at a revalued amount, reflecting its fair value at the date of revaluation.

Key Aspects of Fair Valuation under IndAS 16 /IAS 16 / ASC 360:

  • Revaluation Model: Entities opting for the revaluation model must measure PPE at its fair value, determined based on market-based evidence, at the date of revaluation, less any subsequent accumulated depreciation and impairment losses.
  • Frequency of Revaluation: Revaluations should be performed with sufficient regularity to ensure that the carrying amount does not differ materially from the fair value at the balance sheet date.
  • Comprehensive Assessment: The fair value assessment involves a comprehensive evaluation of the asset’s condition, market conditions and comparable transactions, ensuring an accurate reflection of the asset’s worth.
  • Reporting and Disclosure: IndAS / IAS / ASC  requires detailed disclosures about the revaluation, including the methods and significant assumptions used, the effective date of the revaluation and the carrying amount of revalued assets.

At VSJC, we provide expert revaluation services for PPE in compliance with Ind AS 16. Our team conducts thorough inspections and leverages market data to determine the fair value of your assets, ensuring accurate and up-to-date financial reporting.

IndAS 19 / IAS 19 / ASC 715– Employee Benefits

Ind AS 19 / IAS 19 / ASC 715 – Employee Benefits, mandates the fair valuation of plan assets for employee benefit schemes. This standard ensures that companies accurately reflect the cost of providing employee benefits and the corresponding liabilities on their financial statements.

Key Aspects of Fair Valuation under Ind AS 19 / IAS 19 / ASC 715 :

  • Plan Assets Valuation: Fair valuation of plan assets is crucial for determining the funded status of employee benefits plans, such as pension schemes, gratuity, and other long-term employee benefits.
  • Actuarial Assumptions: Accurate valuations depend on robust actuarial assumptions, including discount rates, salary growth, and employee turnover rates, which must reflect current market conditions and best estimates.
  • Liability Measurement: The fair valuation of plan assets directly impacts the measurement of the company’s liabilities for defined benefit plans, ensuring that the financial statements present a true and fair view of the obligations.
  • Comprehensive Reporting: IndAS / IAS / ASC requires detailed disclosures about the valuation methods, assumptions used, and the financial impact of employee benefit plans on the company’s financial position and performance.

At VSJC, we offer specialized services to ensure compliance with Ind AS 19, providing precise valuations and comprehensive reports that meet regulatory standards. Our expert team leverages the latest actuarial techniques and market data to deliver accurate and reliable valuations of employee benefit plan assets.

IndAS 20 / IAS 20 /ASC 958-605– Non-monetary govt grants

IndAS 20 / IAS 20 /ASC 958-605 – Accounting for Government Grants and Disclosure of Government Assistance, provides guidelines for the recognition, measurement, and disclosure of government grants and assistance. One key aspect of this standard is the fair valuation of non-monetary grants received by entities.

Key Aspects of Fair Valuation under IndAS 20 / IAS 20 /ASC 958-605:

  • Non-Monetary: When entities receive non-monetary grants, such as land, buildings, or equipment, Ind AS 20 requires these assets to be recognized at fair value upon receipt.
  • Fair Value Determination: The fair value of non-monetary grants is determined based on market prices or, if market prices are not available, through valuation techniques that reflect the asset’s condition, location, and use.
  • Recognition and Measurement: Once the fair value is determined, the non-monetary grant is recognized in the financial statements as both an asset and a corresponding grant. This ensures that the financial impact of receiving the grant is accurately reflected.
  • Disclosure Requirements: IndAS / IAS / ASC mandates detailed disclosures about the nature and amount of government grants, the accounting policy adopted for grants, and any unfulfilled conditions or contingencies attached to the grants.

At VSJC, we specialize in providing precise fair valuations for non-monetary grants in accordance with Ind AS 20. Our team of experts uses the latest market data and valuation techniques to ensure that these assets are accurately valued, supporting transparent and compliant financial reporting.

IndAS 36 / IAS 36 / ASC 360– Impairment of Assets

IndAS 36 / IAS 36 / ASC 360 – Impairment of Assets, outlines the procedures that entities must follow to ensure that their assets are carried at no more than their recoverable amount. If an asset’s carrying amount exceeds its recoverable amount, the asset is considered impaired, and the entity must recognize an impairment loss.

Key Aspects of Fair Valuation under IndAS 36 / IAS 36 / ASC 360:

  • Recoverable Amount: The recoverable amount of an asset is the higher of its fair value less costs of disposal (FVLCOD) and its value in use (VIU). Fair valuation plays a crucial role in determining the FVLCOD.
  • Identification of Impairment Indicators: Entities must assess at each reporting date whether there is any indication that an asset may be impaired. If such indicators exist, a formal impairment test is required.
  • Fair Value Less Costs of Disposal (FVLCOD): This is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, less the costs of disposal. It involves:
    • Market-Based Evidence: Utilizing observable market data to determine fair value.
    • Valuation Techniques: Employing techniques such as comparable market transactions, discounted cash flow analysis, and cost approach when market prices are not directly available.
  • Impairment Loss Recognition: If the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognized in the profit and loss account.
  • Disclosure Requirements: Ind AS 36 requires entities to disclose information about the assumptions and valuation techniques used to determine recoverable amounts, the amount of impairment losses recognized or reversed, and the events leading to impairment.

At VSJC, we offer expert impairment testing services in compliance with Ind AS 36. Our team conducts thorough valuations to determine the fair value of your assets, ensuring that any impairment losses are accurately identified and reported.

IndAS 40 / IAS 40 / ASC 360 – Investment Properties

IndAS 40 / IAS 40 / ASC 360 – Investment Property, sets out the requirements for the recognition, measurement, and disclosure of investment properties. Investment properties are defined as properties held to earn rentals or for capital appreciation, or both, rather than for use in the production or supply of goods or services or for administrative purposes.

Key Aspects of Fair Valuation under IndAS 40 / IAS 40 / ASC 360:

  • Initial Recognition: Investment properties should be initially recognized at cost, including transaction costs. If payment is deferred, the cost is the cash price equivalent.
  • Subsequent Measurement: Entities have the option to choose either the fair value model or the cost model for subsequent measurement. Under the fair value model, investment properties are measured at fair value, with changes in fair value recognized in profit or loss.
  • Fair Value Determination: The fair value of investment properties is determined based on current prices in an active market for similar properties in the same location and condition, and subject to similar lease and other contracts.
    • Market-Based Evidence: Utilizing observable market data to establish fair value.
    • Valuation Techniques: Applying techniques such as the income approach (discounted cash flow analysis), cost approach, and comparable market transactions when direct market prices are not available.
  • Disclosure Requirements: IndAS / IAS / ASC mandates detailed disclosures about the valuation method used, significant assumptions applied, and the extent to which fair value has been determined based on observable or unobservable inputs. It also requires disclosures about the reconciliation of carrying amounts and any restrictions on the realizability of investment properties or the remittance of income and proceeds of disposal.

At VSJC, we provide comprehensive fair valuation services for investment properties in accordance with Ind AS 40. Our expert team uses the latest market data and valuation techniques to ensure accurate and reliable valuations, supporting transparent and compliant financial reporting.

IndAS 41 / IAS 41 / ASC 905 – Biological Assets

IndAS 41 / IAS 41 / ASC 905 – Agriculture, provides guidance on the accounting treatment and disclosure requirements for biological assets and agricultural produce. Biological assets include living plants or animals, while agricultural produce refers to the harvested product of these biological assets.

Key Aspects of Fair Valuation under IndAS 41 / IAS 41 / ASC 905 :

  • Initial Recognition: Biological assets should be initially recognized at fair value less costs to sell, unless the fair value cannot be measured reliably.
  • Subsequent Measurement: After initial recognition, biological assets are measured at fair value less costs to sell, with changes in fair value recognized in profit or loss. Agricultural produce harvested from biological assets is measured at fair value less costs to sell at the point of harvest.
  • Fair Value Determination: The fair value of biological assets and agricultural produce is determined based on current market prices in an active market, considering the condition and location of the assets.
    • Market-Based Evidence: Utilizing observable market data to establish fair value.
    • Valuation Techniques: Applying techniques such as the income approach (discounted cash flow analysis), cost approach, and comparable market transactions when direct market prices are not available.
  • Disclosure Requirements: IndAS / IAS /ASC mandates detailed disclosures about the methods and assumptions used to determine fair value, the nature and extent of biological assets, and any restrictions on the realizability of biological assets. It also requires disclosures about the reconciliation of changes in the carrying amount of biological assets.

At VSJC, we offer specialized fair valuation services for biological assets in compliance with Ind AS 41. Our team of experts utilizes the latest market data and valuation techniques to ensure accurate and reliable valuations, supporting transparent and compliant financial reporting.

IndAS 102 / IFRS 2 / ASC 718 – Share based payments (ESOP)

IndAS 102 / IFRS 2 / ASC 718 – Share-Based Payment, outlines the accounting requirements for share-based payment transactions, including Employee Stock Option Plans (ESOPs). This standard ensures that entities recognize the cost of providing equity-based compensation to employees and other stakeholders in their financial statements.

Key Aspects of Fair Valuation under IndAS 102 / IFRS 2 / ASC 718:

  • Initial Recognition: Entities must measure the fair value of equity instruments granted (e.g., stock options) at the grant date. This fair value is recognized as an expense over the vesting period.
  • Valuation Techniques: The fair value of stock options is typically determined using option pricing models such as the Black-Scholes model or the binomial model. These models consider factors such as the exercise price, the current market price of the shares, the expected volatility, the option’s expected life, the risk-free interest rate, and expected dividends.
  • Performance Criteria: For ESOPs with performance criteria affecting the option price, the valuation must incorporate the probability of achieving these performance conditions. Performance criteria may include financial targets, stock price thresholds, or other specific metrics.
  • Measurement and Recognition: The fair value of ESOPs with performance conditions is recognized as an expense over the vesting period, adjusted for the likelihood of meeting the performance criteria.
  • Disclosure Requirements: IndAS / IFRS / ASC requires detailed disclosures about the nature and extent of share-based payment arrangements, including the number of options granted, exercised, and forfeited during the period. Additionally, entities must disclose the valuation method used, assumptions made, and the impact of share-based payments on the financial statements.

At VSJC, we provide expert fair valuation services for ESOPs in compliance with Ind AS 102. Our team leverages advanced valuation techniques and comprehensive market data to ensure accurate and reliable valuations, supporting transparent and compliant financial reporting.

IndAS 109 / IFRS 9 / ASC 320,326 – Unlisted Financial Instruments

IndAS 109 / IFRS 9 / ASC 320,326 – Financial Instruments, provides comprehensive guidelines for the recognition, measurement, and disclosure of financial instruments, including unlisted investments. The standard outlines how entities should classify and measure financial assets and liabilities, ensuring that their financial statements accurately reflect the value of these instruments.

Key Aspects of Fair Valuation under IndAS 109 / IFRS 9 / ASC 320,326:

  • Classification: Unlisted investments can be classified either as Fair Value Through Profit or Loss (FVTPL) or Fair Value Through Other Comprehensive Income (FVTOCI), depending on the business model for managing the financial assets and the contractual cash flow characteristics.
    • FVTPL: Financial assets classified as FVTPL are measured at fair value, with changes in fair value recognized in profit or loss.
    • FVTOCI: Financial assets classified as FVTOCI are measured at fair value, with changes in fair value recognized in other comprehensive income (OCI).
  • Fair Value Determination: The fair value of unlisted investments is determined based on market data and valuation techniques, as these investments do not have quoted market prices.
    • Market-Based Evidence: Utilizing comparable transactions and market data to estimate fair value.
    • Valuation Techniques: Applying techniques such as discounted cash flow (DCF) analysis, earnings multiples, and net asset value (NAV) approach when market prices are not directly available.
  • Measurement and Recognition: For unlisted investments classified as FVTPL or FVTOCI, fair value changes are measured and recognized at each reporting period, ensuring that the financial statements reflect the current market conditions and the investment’s fair value.
  • Disclosure Requirements: IndAS / IFRS / ASC requires detailed disclosures about the valuation methods and assumptions used, the classification of financial assets, and the impact of fair value changes on the financial statements.

At VSJC, we provide expert fair valuation services for unlisted investments in compliance with Ind AS 109. Our team utilizes advanced valuation techniques and comprehensive market data to deliver accurate and reliable valuations, supporting transparent and compliant financial reporting.

IndAS 116 / IFRS 16 / ASC 842 – Leases

IndAS 116 / IFRS 16 / ASC 842 – Leases, provides comprehensive guidance on the accounting treatment of lease agreements. This standard requires lessees to recognize assets and liabilities for most leases on their balance sheets, ensuring that the financial implications of leasing arrangements are accurately reflected in financial statements.

Key Aspects of Fair Valuation under IndAS 116 / IFRS 16 / ASC 842:

  • Recognition of Right-of-Use Assets and Lease Liabilities: Lessees must recognize a right-of-use (ROU) asset and a corresponding lease liability at the commencement date of the lease. The lease liability is initially measured at the present value of lease payments to be made over the lease term.
  • Measurement of Lease Liabilities: The lease liability is measured using the interest rate implicit in the lease or, if that rate cannot be readily determined, the lessee’s incremental borrowing rate. The liability is subsequently measured at amortized cost, using the effective interest rate method.
  • Valuation of Right-of-Use Assets: The ROU asset is initially measured at cost, which includes the initial amount of the lease liability, any lease payments made at or before the commencement date, and any initial direct costs incurred. The ROU asset is subsequently measured at cost less accumulated depreciation and impairment losses.
  • Reassessment and Modification: Lessees must reassess the lease liability and adjust the ROU asset when there are changes in lease terms, such as modifications, changes in the lease term, or changes in the assessment of an option to purchase the underlying asset.
  • Disclosure Requirements: IndAS / IFRS / ASC mandates detailed disclosures about lease arrangements, including information about the amount, timing, and uncertainty of lease payments. Entities must disclose the carrying amount of ROU assets, lease liabilities, and the maturity analysis of lease liabilities.

At VSJC, we offer expert valuation services for leases in compliance with Ind AS 116. Our team ensures accurate measurement and reporting of lease liabilities and ROU assets, supporting transparent and compliant financial statements.

SEBI – Regulation 21 – NAV Publication by Infra InvIT Trusts & ReIT
SEBI REITs and InvITs Regulation 21 – The Securities and Exchange Board of India (SEBI) has established detailed regulations for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to ensure transparency, governance, and investor protection. Regulation 21 under these regulations mandates systematic and regular valuation of REIT and InvIT assets to provide accurate and reliable information to investors and other stakeholders. Key Aspects of Valuation under SEBI REITs and InvITs Regulation 21:
  • Annual Valuation: Regulation 21(4) requires that the assets of both REITs and InvITs be valued by a registered valuer at least once every financial year. This ensures that the financial statements present an up-to-date reflection of the market value of the assets.
  • Half-Yearly Valuation: Regulation 21(5) stipulates that for publicly listed REITs and InvITs, the valuation of the assets must be conducted on a half-yearly basis. This valuation must be carried out by a valuer and reviewed by another valuer, thereby enhancing the credibility and accuracy of the valuation process.
  • Detailed Valuation Reports: The valuation reports must include comprehensive assessments of the assets, covering key factors such as market conditions, asset performance, and any changes in asset value. These reports are essential for investors to make informed decisions.
  • Disclosure Requirements: Both REITs and InvITs must disclose the valuation reports to the stock exchanges and make them publicly available on their websites. This ensures transparency and builds investor confidence in the valuation process and the reported asset values.
At VSJC, we provide expert valuation services for both Real Estate Investment Trusts and Infrastructure Investment Trusts, ensuring compliance with SEBI regulations and supporting transparent and informed investment decisions.
SEBI – Regulation 23 – Asset Valuation for AIF Category I & II
SEBI AIFs Regulation 23 – The Securities and Exchange Board of India (SEBI) has instituted comprehensive regulations for Alternative Investment Funds (AIFs) to ensure transparency, governance, and investor protection. Regulation 23 under these regulations mandates systematic and regular valuation of the investments held by Category I and Category II AIFs to provide accurate and reliable information to investors and other stakeholders. Key Aspects of Valuation under SEBI AIFs Regulation 23:
  • Periodic Valuation: Regulation 23 requires that the assets of Category I and Category II AIFs be valued by an independent valuer appointed by the AIF. The valuation must be carried out at least once every six months, ensuring that the financial statements reflect the current market value of the investments.
  • Valuation Methodology: The valuer must follow internationally accepted valuation principles and practices to determine the fair value of the investments. This includes using market-based evidence and appropriate valuation techniques such as discounted cash flow analysis, comparable market transactions, and net asset value methods.
  • Detailed Valuation Reports: The valuation reports must include comprehensive assessments of the investments, considering factors such as market conditions, asset performance, and any changes in the value of the investments. These reports are essential for investors to make informed decisions.
  • Disclosure Requirements: AIFs must disclose the valuation reports to their investors and include them in the financial statements. This ensures transparency and builds investor confidence in the valuation process and the reported asset values.
At VSJC, we provide expert valuation services for Category I and Category II Alternative Investment Funds, ensuring compliance with SEBI regulations and supporting transparent and informed investment decisions.
SEBI - -Regulation 34 – Intellectual Property Valuation in Share Based Payments
SEBI IPR Valuation Regulation 34 – The Securities and Exchange Board of India (SEBI) has established comprehensive regulations for share-based employee benefits and the issuance of sweat equity to ensure transparency and fairness. Regulation 34 under these regulations mandates the valuation of know-how, intellectual property rights (IPR), or value addition provided by employees, which forms the basis for granting sweat equity shares. Key Aspects of Valuation under SEBI Regulation 34:
  • Valuation of Know-How and IPR: When a company issues sweat equity shares, it must determine the fair value of the know-how or intellectual property rights contributed by the employee. This valuation should reflect the true worth of the contributions in terms of their impact on the company’s performance and market position.
  • Valuation of Value Addition: In addition to know-how and IPR, the company must also assess the value addition brought by the employee. This includes evaluating the improvements, innovations, or strategic advantages provided by the employee that enhance the company’s value.
  • Independent Valuer: The valuation must be conducted by an independent valuer registered with SEBI. The valuer should use appropriate and accepted valuation methods to determine the fair value of the contributions.
    • Valuation Techniques: The valuer may use techniques such as discounted cash flow analysis, relief-from-royalty method, and cost approach to accurately assess the value of know-how, IPR, or value.
  • Detailed Valuation Reports: The valuation report must include a comprehensive assessment of the know-how, IPR, or value addition, detailing the methods and assumptions used in the valuation process. This report is crucial for justifying the issuance of sweat equity shares.
  • Disclosure Requirements: Companies must disclose the valuation reports to shareholders and regulatory authorities, ensuring transparency and building investor confidence in the equity issuance process.
At VSJC, we provide expert valuation services for know-how, intellectual property rights, and value addition in compliance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. Our valuations support transparent and fair issuance of sweat equity shares.