How is compensation expense computed using the fair value approach?

Fair value methodology is an accounting approach that perceives the assets and liabilities at current market esteems that they would be sold for or agreed to respectively. It accepts that there exists a market where a deliberate exchange to an outsider in view of the predominant economic situations can give the best assessed of the worth the resources can be sold for or liabilities can be made due with. The methodology is favoured on the grounds that it is supposed to be sane and fair-minded.

Whether the asset or liability is an independent resource or risk, a group of resources, a gathering of liabilities or a group of resources and liabilities for acknowledgment or divulgence purposes relies upon its unit of record. The unit of record for the resource or responsibility not set in stone as per the Ind AS that requires or allows the fair value estimation, besides as given in this Ind AS.