banner_ad

Unquoted invstments in subsidiaries

Statutory Audit 525 views 1 replies

I have a doubt regarding classification of unquoted investments in subsidiary companies. Whether it is in the nature of current asset? Auditor has classified it as current investment. Whether it can be included in the calculation of current ratio? please reply fast.Its urgent

Replies (1)

Hi Swathy,

 

As per Revised Sch VI, current period means normal operating cycle of a company (normally 1 year). If company acquired investments with an intention to sell it in short run (i.e. before 1 year from date of acquisition), then only it can be classified under 'Current Assets'. All depends on an INTENTION behind acquisition.

 

If company acquired with an intention to hold it for a long run, then such investments has to be included under 'Non Current Assets'.

Even if company sold it before 1 year, still initially it will be under NCA since 'intention' was to hold for a long run.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details