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?
Menu
Accounting entry
Replies (1)
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.
Recent Topics :
- LTCG 112A and business loss
- FAST-DS 2026 applicability: foreign employee share
- NRI Property Sale in India: TDS Rates and Key Comp
- Clarification on September 2026 PF Calculation for
- DRC-03 interest paid under CGST/SGST instead of IG
- GSTR1 amendment Bulk bills
- Capital Gain on Sale of Gold
- GST SALES RETURN MISSING 2025-26 FY
- Enquiry on FAST-DS system generated email
- Capital gain on sale of agriculture land
Related Topics :
CAclubindia
