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
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Valuation of shares
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 | ||
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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. |
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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 | ||
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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. |
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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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