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
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Non filing of I T Returns
- UDIN ISSUE
- SALARY CAN BE CAPITALIZE
- GST Intimation due to Government took possession of Business Premises under PPE Act
- TDS on Fixed Assets purchased
- TDS on purchase of under construction property from a reseller
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
