Valuation of shares

AS 4410 views 7 replies

cost of shares - 500000-current investment

Market value of such shares - 200000-current investment

What will be the treatment of such downfall in the value of shares in books of accounts and income tax

please provide a journal entry if possible 

 

Replies (7)

As per AS 13, current investments should be recorded at  cost price or Market value whichever is lower.

the difference should be reported in p/l ac.

Originally posted by : CA Pooja Agarwal

As per AS 13, current investments should be recorded at  cost price or Market value whichever is lower.

the difference should be reported in p/l ac.

Cost price only to be shown in current investments. No difference in P & L a/c. Since market value is not to be recorded in financial accounts.

thank you

but what about income tax

 

Originally posted by : Rama chary




Originally posted by : CA Pooja Agarwal






As per AS 13, current investments should be recorded at  cost price or Market value whichever is lower.

the difference should be reported in p/l ac.






Cost price only to be shown in current investments. No difference in P & L a/c. Since market value is not to be recorded in financial accounts.

 

Mr.Rama i request you to read AS 13.

 

no treatment as per income tax..however if its disposed off, the loss should be treated as short term capital loss

thanks a lot mam

Loss can be long term as well..


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