Fair Value technique as per Ind As 113

660 views 6 replies

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)

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

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 18 July 2026
Senior Manager- Finance & Accounts

apricus india

Ahmedabad

CA

View Details
Company
16 July 2026
Manager - Finance & Accounts

Aliens Group

Hyderabad

CA Final

View Details
Company
23 July 2026
CA Inter

Vikram Jadhav and Company

Pune

CA Inter

View Details
Company
20 July 2026
Senior GST Executive

Chandak Agarwal & Co

Mumbai

Graduate (Any)

View Details
Company
23 July 2026
Senior Accountant

Felicity Adobe LLP

Bengaluru

CA Inter

View Details
Company
21 July 2026
Chartered Accountant

Keshri & Associates

Thiruvananthapuram

CA

View Details
Company
ARTICLESHIP 08 July 2026
Article internship

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details