Why decline in the value of investment is considered as non-adjusting event?
Why not we consider it as an adjusting event? Since the events related to the circumstances existed on the date of balance sheet
Why decline in the value of investment is considered as non-adjusting event?
Why not we consider it as an adjusting event? Since the events related to the circumstances existed on the date of balance sheet
Sumant Gajanan Sathe
(Service)
(59 Points)
Replied 22 February 2011
Investments referred in AS4 are non current investments, & if you remember / know non-current investments are always carried at historical cost.
reason behind carring long term investments at historical cost may be that in long term price/ market value is less volatile.
if doubt persist, contact any expert.
thank u.
Sumant Gajanan Sathe
(Service)
(59 Points)
Replied 22 February 2011
there is 1 more thing though circumstances existing on balance sheet date , it will be difficult to prove that those circumstances will result in declining in value of investments for long term.
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