Shares Lending and Borrowing

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Student CA Final
24 Points Posted on 05 September 2020
whether Shares under stock lending mechanism to be valued on valuation date and Profit or Loss on same to be provided in Books of Accounts
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On 05 September 2020 at 22:34 Report
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This discussion clarifies the accounting treatment for shares involved in lending and borrowing mechanisms. It confirms that shares under stock lending should be valued on the valuation date, with profit or loss recognised in the books of accounts annually, aligning with IndAS reporting standards. Even if a company policy allows for biennial revaluation, fair value changes must be reported at closing. For borrowed shares, the accounting treatment under AS involves valuing them under obligation and reporting them as short-term borrowings.

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My grammar is 💯 good I
7306 Points Posted on 06 September 2020

Yes. That is what IndAS reporting is about. Report everything either at NBV or revaluation method annually. FVTPL gain or loss is reported annually. Despite company policy to revalue some assets every two years, the fair value changes of the investment should be reported on the closing date. 

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On 06 September 2020 at 08:53
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My grammar is 💯 good I
7306 Points Posted on 06 September 2020

https://www.caclubindia.com/forum/accounting-for-lending-amp-borrowing-of-securities-45384.asp

 

here the treatment is straightforward, but if the recognition or derecognition of your investment after lending is not published completely. However, valuations are annual and stock treatment on the balance sheet is not prescribed. 

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On 06 September 2020 at 09:10
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Student CA Final
24 Points Posted on 07 September 2020
Thank You
i have borrowed shares and in financials it is under Short Term borrowings as it is my obligation
we are following AS
so need to value shares under obligation
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On 07 September 2020 at 14:31

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