What is the meaning of this sentence?
AS 13
Where the investments are acquired on cum-right basis and the market value of investments immediately after their becoming ex-right is lower than the cost for which they were acquired, it may be appropriate to apply the sale proceeds of rights to reduce the carrying amount of such investments to the market value.
Menu
AS 13
Replies (1)
It means that - when the investments are acquired immediately before a rights issue is declared ( cum- right means- inclusive of rights issue) , and post the issue of rights shares , the market value of such investment reduces- then you have to reduce the carrying amount of investments by deducting the price of rights shares -doing so will reflect the correct carrying cost of investments in the books of accounts
Recent Threads
- Advice on income tax
- E filing thr net banking for AY2025-26
- PROPERTY REPORTING IN ITR
- F&o profit or loss can show a government emplo
- Tax Query for FY 2024-25
- ITR Offline JSON Utility not showing saved drafts
- Incometax port8 not working
- U4gm-Leveling an Amazon Build with Lightning Spear
- 44ADA income declaration
- Taxation of RSU sold of foreign listed entity by e
Related Threads
CAclubindia
