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Investing activities as per AS-3

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Atharv Sankliya

1359 Points Posted on 19 May 2022

does equity shares of reliance tata etc is investing activities ?? or cash equivalents ?

Replies (6)

Quick Summary

This discussion clarifies that investments in equity shares of companies like Reliance and Tata are considered investing activities, not cash equivalents, according to AS-3. The accounting treatment applies when these investments are made as part of a company's business operations and are reflected on the balance sheet. For salaried individuals or personal investments, accounting standards may not be relevant.

Kev Men

790 Points Posted on 19 May 2022

They are investing activity. They are not cash equivalents.

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 20 May 2022

If investing activity is carried out from business then only AS-3 or 13 comes into picture..

If investment is done in your personal capacity then it's not form part of balance sheet

sabyasachi mukherjee

Profession Business

28246 Points Posted on 20 May 2022

ANY INVESTMENTS DONE IS AS PER GUIDELINES BY NORMS OR POLICIES OF THAT COMPANY BUT ACCOUNTING IS STRICTLY AS PER GUIDELINES OF ACCOUNTING STANDARDS AND ACCOUNTING CONVENTION AS PER ICAI.

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 20 May 2022

When accounting is not required then accounting standards have no relevance.

Do a salaried employee have investments in equity, Is there any relevance of Accounting Standards ?