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Investment accounting

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Querist : Anonymous

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Querist : Anonymous (Querist)
10 October 2013 If an investment is acquired by issue of shares,the acquisition cost is the fair value of the shares.

The fair value may not necessarily be equal to the nominal or par value of the shares issued.

Can anyone explain the latter statement please?
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CA Parul Saxena

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CA Parul Saxena (Expert)
11 October 2013 Fair value may be equal to the market value and the nominal value or par value means face value of the share....so market value may or may not equal to face value of the share.
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Ajay Mishra

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Ajay Mishra (Expert)
11 October 2013 Agreed with Expert opinion.
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