Can anybody help me?
Please explain me about the Accounting for Investment (AS13)
Specialy Cost of Investment & Carrying amt of Investments.
Thank u
CA Shantanu Goyal
(Practicing CA)
(122 Points)
Replied 29 May 2010
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.
CA Sandeep Thakur
(Managment Trainee)
(188 Points)
Replied 29 May 2010
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
Lakshmi
(Student)
(1836 Points)
Replied 29 May 2010
Thank u for u r answer one doubt
What is meant by fair value?
Is it similiar to the mkt value concept?
Vinay Bhati
(Practicing Chartered Accountant)
(40 Points)
Replied 29 May 2010
CA.Ankit Juneja
(Assisstant manager - Accounts in a UK Based MNC)
(189 Points)
Replied 30 May 2010
Hey frnds as per my understanding AS 13 has been ineffective for investments like shares its only applicable for immovable property after applicability of AS30,31,32.... Please correct me if I am wrong
CAclubindia
