what will be the accounting treatment for profit from sale of investment (shares) ?
will it considered as capital profit?
It is called CAPITAL GAIN........... BE LONG TERM OR SHORT TERM..
Atharv Sankliya (1306 Points)
11 January 2023
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160611 Points)
Replied 11 January 2023
It is called CAPITAL GAIN........... BE LONG TERM OR SHORT TERM..
sabyasachi mukherjee
(26187 Points)
Replied 11 January 2023
Atharv Sankliya
(1306 Points)
Replied 11 January 2023
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160611 Points)
Replied 12 January 2023
AS 13 deals with accounting for investments made by an enterprise in another enterprise and the disclosure of such investments in the financial statements. An enterprise holds investments for a variety of reasons. Such investments form a significant aspect of the operations of an enterprise in certain cases. Therefore, the evaluation of the performance of such an enterprise depends upon the return earned through such investments.
Hence the gain is transffered to P&L acct., while (any) loss is debited to cost of investment.
CAclubindia
