VALUE OF INVESTMENT IN BALANCE SHEET


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Quick Summary
When reporting mutual fund investments on a balance sheet, the key question is whether to use the initial cost or the current market value. For a fund with a 5-year lock-in, currently valued at £3,40,000 against an initial investment of £1,50,000, accounting standards, specifically AS 13, dictate the valuation method. Generally, investments are shown at cost unless there's an intention to sell or a permanent diminution in value.

(Querist)
24 November 2022 Amount invested in Mutual Fund: 1,50,000/-
Period: 5 years lock-in period.
At present market value: 3,40,000/-

at what value investment should be shown in the balance sheet 1,50,000 or market value of 3,40,000.

24 November 2022 Rupees 1,50,000. Inference - Accounting standard 13.

pavel (Querist)
19 December 2022 thnk u sooo much sir for ut reply


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