Appreciation

No you cannot... Investments are to be valued at cost or market value whichever is lower.. Just mention it as a note under the mutual funds the M.V. of such funds..

Rgds

Agree with Mr First

mutual funds are to be shown in the books at their respective market value

so, should be recognised

as far as for grouping, if it is necessary to show individually, show them individually

It will be better if you all are go through the Accounting standard AS-13.

I think there is a guidance Note on accounting for Mutual funds and yes they do have to consider appreciation in investments... atleast just for the sake of preparing financial statements

Mutual Funds should be valued at Net Asset Value(NAV) as on that date. And,if any profit/loss arising on such valuation, it should be recognised in the Profit & loss account.

according to me.. if you are holding Mutual fund as stock than only the concept of NAV and cost will apply.

If you holding it as investment than value it at cost only and at time of sale, do consider the profit and loss and offer for tax.

Also Guidance notes on Mutual fund does not exist now after applicability of AS 30 from 1.4.2009....