What will be the entry for Provision for Diminution in Investments and Where should it be disclosed, in Extraordinary Items ? and Should the entry needs to be reversed at the beginning of the year?
and where to disclose amount written off?
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Accounting entry
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As per AS-13 Accounting for Investments, if the diminution in the value of the investments is other than of the temporary nature, then the value of the investments shud be written down to teh recoverable value. The acc entry for the same would be as follows:
Loss in Value of INvestments Dr
To- Investments A/c
The loss in the value of investments shud be shown seperately in the P&L account to know the impact of such loss on teh current profit of the company
There's no need to reverse the entry.
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