FAIR VALUE ACCOUNTING AND VALUATION OF NON- FINANCIAL ASSETS: A STUDY OF IMPACT OF IFRS ADOPTION Nisha Kalra Chadda*, Shilpa Vardia** INTRODUCTION An accountant plays a vital role in the accounting measurement process when evaluating the assets and liabilities in the preparation of fnancial statements of the corporate sector. Thus, the choice of accounting measurement method is refected in the four fnancial statement processes (income statement, balance sheet, cash fow statement, and statement of change in equity). It means that they follow the appropriate method during the assets and liabilities measurement process. In today’s business environment as a volatile and changing environment, the measurement of assets and liabilities on fair value accounting provides greater transparency and appropriateness compared to historical cost. The proper value measurement gives a lot of the relevant information to the investors, which helps them in making appropriate investment decisions. It has to be when providing accounting information to visualize the information and the reality of the corporate sector fnancially relevant and reliable. The measurement process seeks the protection of investors in the corporate market and the creation of calls that are fair and transparent. The fnancial statements are prepared following fair value accounting, providing a signifcant beneft to investors. Investors are looking at fnancial information from a broad global investment perspective. For this reason, it is essential to use acceptable accounting standards which are generally accepted by the international level and provide full transparency on an equal level. It is a crucial tool for attracting investment too. Accounting measurement using fair value requires coping up with the needs of users of fnancial statements in a globalized era. The accounting information quality is the characteristics that must be provided by the fnancial information. Without this, it loses value of fnancial data and divides accounting information * Assistant Professor, Institute of Commerce, Nirma University, Ahmedabad, Gujarat, India. Email: nishakalra09@gmail.com ** Assistant Professor, Department of Accountancy and Statistics, University College of Commerce and Management Studies, Mohanlal Sukhadia University Udaipur, Rajasthan, India. Email: shilpa.vardia@gmail.com Abstract This paper tries to examine the degree of adaptability of the Fair Value concept, as codifed in the International Financial Reporting Standards (IFRSs), in Indian Accounting Standards. Indian Accounting Standards are the offcial set of corporate fnancial reporting standards of India, a major emerging economy on the world map. Researchers examine whether and why companies preferred fair value to historical cost and what extent they choose between the two valuation methods. Except for property investment owned by real estate companies, historical price by far dominates fair value in practice. Indeed, proper value accounting is not mandatory for the plant, equipment, and intangible assets. The study includes the valuation methods for arguably the most controversial (non-fnancial) asset group: Property Plant and Equipment (PPE) and Property investment. For this, researchers have selected India’s top twenty real estate companies and examined companies’ incentives to choose fair value over historical cost by analyzing cross-sectional variation in valuation practices after IFRS adoption. In this research logistic regression model have been used to the probability that a given company will apply fair value as a function of company-specifc characteristics. Researchers match each fair value of the company with historical cost companies, which are based on market capitalization in the stock market and the log of the market value of equity. It is found that companies using fair value accounting rely more on debt fnancing than companies that use historical cost. The evidence is consistent with companies using fair value to signal asset liquidation values to their creditors. It is not compatible with equity investors demanding fair value accounting for non- fnancial assets. Keywords: Fair Value Accounting, IFRS, Historical Cost, Non-Financial Assets JEL Classifcation: O34, C21, C12, C23 Journal of Commerce & Accounting Research 9 (4) 2020, 63-72 http://publishingindia.com/jcar/ Submitted: 15 May, 2020 Accepted: 05 June, 2020