IFRS Vs IGAAP (AS)

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2011 As per AS 13, the Long term investment has to be recorded at cost unless there is a permanent reduction in value.

USGAAP/ IFRS require HTM (Held to Maturity) / AFS (Available for Sale) investments to be checked for impairment on every balance sheet date. (fair value principle).

There is an investment in stock market, which crashed on the balance sheet date. The management believes the fundamentals of the company are sound, and that there is no provision required as per AS 13.

1. Would this be ok to record the investment at cost as per AS13.
2. Would impairment be required as per USGAAP/ IFRS.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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03 January 2011 Investment covered under AS 13, is excluded under IFRS.

1. you can record the investment as per AS13.

Vivek Raju P

Vivek Raju P (Expert)
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03 January 2011 As per AS 13, the carrying amount of a long term investment is to be adjusted if there an other than temporary reduction in the value of the investment. Fluctuations in stock market should not effect the value of long term investments as they are not marked to market at every balance sheet date. Hence as per AS 13, the investment may still be carried at cost.

Need to check on IFRS