Investments (AS- 13 )
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 September 2010
Hi Friends
Suppose I have some Long Term Investment in the books and the market value of the Investment have become NIL as on the last day of the Balance Sheet and also no amount is recoverable from the Investment in the upcoming future.
What will be the accounting treatment of the same in Double Entry System.
Thanking you in anticipation.
Regards
Shyam
Suppose I have some Long Term Investment in the books and the market value of the Investment have become NIL as on the last day of the Balance Sheet and also no amount is recoverable from the Investment in the upcoming future.
What will be the accounting treatment of the same in Double Entry System.
Thanking you in anticipation.
Regards
Shyam
08 September 2010
if investments held are not having any market value same can be written off permanently..
as per as-13, long term investments not having any value can be written off
as per as-13, long term investments not having any value can be written off
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 September 2010
Thank You
But what accounting treatment should i have to follow .....Should I have to write off by charging it to P&L or to General Reserve ..
Regards
Shyam
But what accounting treatment should i have to follow .....Should I have to write off by charging it to P&L or to General Reserve ..
Regards
Shyam
10 September 2010
As per AS 13,you need to charge off in P&L.The relevant portion is quoted below.
"For current investments, any reduction to fair value and any reversals of such reductions are included in the profit and loss statement."
"For current investments, any reduction to fair value and any reversals of such reductions are included in the profit and loss statement."
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