Urgent : valuation of current inverstment
This query is : Resolved
03 May 2014
Hi..
My client holds share and mutual fund and it is traded as short term investment.
My query is whether the shares and mutual fund are to be revaluated to market price by passing profit or loss on revaluation entry.
If yes.. is this entry to be reversed in the yrar begining to show the cost in the books ir it will be carried at market price itself..
Pls reply soon... Thanks in advance..
03 May 2014
as such, if your client considers the stock as inventory, he should value the closing inventory at cost of market value whichever is lower. so marked to market, if any, should be ignored.
the accounting practice you are referring to is followed my mutual funds etc. in such accounting, any marked to market profit or gains is reversed next year.
the accounting practice you are referring to is followed my mutual funds etc. in such accounting, any marked to market profit or gains is reversed next year.
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