AS-4 Decline in the value of investment

AS 514 views 2 replies

Why decline in the value of investment is considered as non-adjusting event? 

Why not we consider it as an adjusting event? Since the events related to the circumstances existed on the date of balance sheet

Replies (2)

Investments referred in AS4 are non current investments, & if you remember / know non-current investments are always carried at historical cost. 

reason behind carring long term investments at historical cost may be that in long term price/ market value is less volatile.

if doubt persist, contact any expert.

thank u.

there is 1 more thing though circumstances existing on balance sheet date , it will be difficult to prove that those circumstances will result in declining in value of investments for long term. 


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