Measurement of financial assets of BSE-Listed information technology companies using fair value hierarchy

Abstract

Measuring financial assets through fair value hierarchy is a rational and equitable estimate. The reliable assessment of financial assets value gave more accuracy, and it was helpful for stakeholders of the companies in their decision-making process. This study aims to exhibit the requirements of the Ind-AS 113 Framework for measuring Financial Assets. The researcher has examined the Measurement of financial assets using a fair value hierarchy in Information Technology Companies during the years 2021 and 2022. The study analyses the consolidated financial statements' fair value hierarchy information. That study found that large and mid-capitalization companies have used more level-1 and level-2 hierarchies than low-capitalization companies. Low capitalization companies have used more level-3 fair value hierarchy. Finally, the study concludes large-capitalization Information Technology companies adopted the fair value principle effectively and used more reliable and relevant information in their financial asset measurement.