Valuation of Shares of Invsetment Company

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2010 Can any body tell me, how to value stock in hand of a investmenmt company as on 31.03.2010 as per the accounting standard.

Ashok Malhotra

Ashok Malhotra (Expert)

05 July 2010 Current investments and long term investments be disclosed distinctly with further subclassification into government or trust securities, shares, debentures or bonds, investment properties, others unless it is required to be classified in other manner as per the statute governing the enterprise.
• Cost of investment to include cquisition charges including brokerage, fees and duties.
• Investment properties should be acounted as long term investments.
• Current investments be carried at lower of cost and fair value either on individual
investment basis or by category of investment but not on global basis.
• Long term investments be carried at cost. Provision for decline (other than temporary) to be made for each investment individually.
• If an investment is acquired by issue of shares/securities or in exchange of an asset,the cost of the investment is the fair value of the securities issued or the assets given up.
Acquisition cost may be determined considering the fair value of the investments acquired.
• Changes in the carrying amount and the difference between the carrying amount and
the net proceeds on disposal be charged or credited to the P & L A/c.
• Disclosure is required for the accounting policy adopted, classification of investments;profit / loss on disposal and changes in carrying amount of such investment.
• Significant restrictions on right of ownership, realisability of investments and remittance of income and proceeds of disposal thereof be disclosed.
• Disclosure should be made of aggregate amount of quoted and unquoted investments
Together with aggregate value of quoted investments.

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