Valuation of investments

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Priti Jain (Querist)
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12 May 2015 Hi.. There is an asset management company (private) which values its investments in equity & mutual fund at cost. Whether accounting treatment is correct. AS-13 (Accounting for investments) is not applicable to the company.

Please suggest.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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12 May 2015 how u can say its not applicable to co?

Priti Jain

Priti Jain (Querist)
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13 May 2015 The standard says that "This Standard does not deal with -
(a) the bases for recognition of interest, dividends and rentals earned
on investments which are covered by Accounting Standard 9 on
Revenue Recognition;
(b) operating or finance leases;
(c) investments of retirement benefit plans and life insurance enterprises;
and
(d) mutual funds and venture capital funds and/or the related asset
management companies, banks and public financial institutions
formed under a Central or State Government Act or so declared
under the Companies Act, 1956.

relevant link - http://www.mca.gov.in/Ministry/notification/pdf/AS_13.pdf

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