share trading

AS 221 views 3 replies
What is the relevant accounting standard to refer to investments made by a share trading firm?
Replies (3)

Not sure but I think AS 2

AS 2 should be applied in accounting for inventories other than:
(a) work in progress arising under construction contracts, including directly related
service contracts (see Accounting Standard (AS) 7, Construction Contracts);
(b) work in progress arising in the ordinary course of business of service providers;
(c) shares, debentures and other financial instruments held as stock-in-trade; and
(d) producers’ inventories of livestock, agricultural and forest products, and mineral oils,
ores and gases to the extent that they are measured at net realisable value in
accordance with well established practices in those industries.
No AS for share trading. But that does not mean you cannot use AS 2. Closing stock should be valued at lower of cost or NRV.


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