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AS -13 (Accounting for investment)

Cost of investment :   The cost beared by any person for purchase of investment is cost of investment as reduced by pre-dividend, if any, received.

Carrying Amount  :      the carrying amount  of current investments shall be COST or MARKET VALUE whichever is lower and for permanent investment it will be COST, subject to permanent reduction.  

hi

As 13 provided that u have to recognize the asset as short -term /long term at the time of purchse itself

Long term assets : these assets are recognized at the cost except for any permanent dimunation in the value of assets , which needed to adjusted by, providing a proviosion for such dimunation.

Short Term assets; these assets are needed to be recognized at cost intially . on the balance sheet date the lower of follwing will be shown as assets

(a) market value(fair value)

(b) cost of such assets.

in IAS the market value has been replaced with the fair value  concept.

For any further assistance,please revert

Regards

sandeep

Thank u for u r answer one doubt

What is meant by fair value?

Is it similiar to the mkt value concept?