Section 70 in The Companies (Indian Accounting Standards) Rules, 2015
70. If an asset or a liability measured at fair value has a bid price and an ask price (eg. an input from a dealer market), the price within the bid-ask spread that is most representative of fair value in the circumstances shall be used to measure fair value regardless of where the input is categorised within the fair value hierarchy (i.e. Level 1, 2 or 3; see paragraphs 72-90). The use of bid prices for asset positions and ask prices for liability positions is permitted, but is not required.
