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Investment

CA Bhanwar Borana (Partner ) (402 Points)

16 December 2009

Friends help me....

What is trading & non trading investment.....????

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4 Replies

MAGESH.G (STUDENT) (195 Points)
Replied 17 December 2009

According to AS 13

A current investment (Trading Investment)is an investment that is by its nature readily realizable and is intended to be held for not more than one year from the date on which such investment is made. Eg: If a co invests in shares and securities for the purpose of gaining profit from short term fluctuations in the the Prices. Here, the aim of the co is not to get dividend/interest on these securities but the aim is to get returns on its WC.

•A long term investment is an investment other than a current investment. Eg: 15 year Bonds and Debentures of IDBI etc. Here the aim is to get int/dividend and there is no intention to sell it within a year.

triumph-CMA (Chartered Accountant) (503 Points)
Replied 17 December 2009

Magesh is right.

Ansari (ca final) (444 Points)
Replied 17 December 2009

Originally posted by : CA Dhirendra Singh
	Magesh is right.

VICKY (CA-Final) (68 Points)
Replied 19 December 2009

Trading investment is that investment whis is made to promote the business of the firm eg. if Co. Raymond invest in the mafatlal fabrics then it will called trading investment because the purpose is to extend the business of rymond Like investment in Subsidiary companies

Other than above investment is called non Trading investments