CAPITAL GAIN
This query is : Resolved
10 December 2009
if we record profit on sale of shares on fifo basis then does it violates AS13
10 December 2009
To make a solution of the above; it is presumed that shares are held for short term (for accounting purpose-deemed as current investments).
For Income-tax purpose; you should record profit on sale of shares on fifo basis.
However; AS-13 provisions are somewhat different.
According to AS-13; at the end of the year; you have to value your shareholding at lower of cost and realisable value.
It means if valuation is made according to FIFo; then it voilates AS-13.
CA Rakhecha
Surat
For Income-tax purpose; you should record profit on sale of shares on fifo basis.
However; AS-13 provisions are somewhat different.
According to AS-13; at the end of the year; you have to value your shareholding at lower of cost and realisable value.
It means if valuation is made according to FIFo; then it voilates AS-13.
CA Rakhecha
Surat
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