Fair Value technique as per Ind As 113

How to fair value Preference Shares ( OCPS) ? Which method to adopt. Can I use Net Worth Asset method and does Ind As 113 permits the use of Net Worth / Adjusted Net Asset Method?

Replies (6)
Quick Summary
This discussion explores the valuation of preference shares according to Ind AS 113's fair value principles. Participants consider methods such as the Net Worth/Adjusted Net Asset method and the dividend discounting model (Po=D/Kp). The conversation highlights the complexities of valuing redeemable preference shares issued at a premium and addresses the common practice of valuing them at face value plus any arrear dividends.

Total share call money 

Less issue costs 

Add finance costs 

Less coupon 

Gives closing non current liability. 

 

 

 

This for redeemable shares on premium  issued at par . What is your type

Now that this part is over, coming to pricing how much a preference share can be issued at is those investment decisions. You have share valuations on my post. But not prefence share. That is due to the amount you need, you have raised that much capital. I'm not working on shares, when I do I'll get back

I found out that preference shares are valued at the face value plus arrear dividend. I have no further clue. Deriving the face value is also not there in MBA which makes things hectic. 

I found out the value of pref shares in B.com books lol. I am making a share valuation models and will give you the link soon.

The formulae are therefore Preference share value: Po=D/Kp

where:
D = the constant annual preference dividend
Po = ex div MV of the share
Kp = cost of the preference sharES
The fixed dividend is based on the nominal value of the preference share,
which may vary. Do not assume the nominal value is always $1.

Hiya, I finished share valuations and u can find them here: https://yasaswigomes.blogspot.com/2022/01/share-valuations-in-nutshell.H T M L

There is no other method published right now in professional resources apart from those

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