Hi ,
AS-2 para -1 says:- Shares, Debentures and other financial instruments held as stock - in - trade are excluded from the scope of AS-2. It should be noted that these are excluded form the scope of AS-13 as well.
If it is so , then how can we determine the value of shares and other financial instruments for an INVESTMENT COMPANY?
I have to rad it carefully then only I can comment but I know Sudhir H. Sir will surely answer this today.
It is given in first module of PCC A/c please refer that
Hi .. the solution for this query is given by way of note 3 to the accounting standard 13...... According to that....Shares, debentures and other securities held as stock-in-trade (i.e., for sale in the ordinary course of business) are not ‘investments’ as defined in this Statement. However, the manner in which they are accounted for and disclosed in the financial statements is quite similar to that applicable in respect of current investments. Accordingly, the provisions of this Statement, to the extent that they relate to current investments, are also applicable to shares, debentures and other securities held as stock-in-trade, with suitable modifications as specified in this Statement.
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