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Write of investment in share

manoj (Account Executive) (37 Points)

31 August 2018

a company A holding 26% of share of another company Bas investment amounting to Rs. 25Lac

the other company B is dormant company

can a company A write of investment in its books of accounts

pleas suggest

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Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 09 September 2018

19. Where there is a decline, other than temporar y, in the carrying amounts of long term investments, the resultant reduction in the carryin amount is charged to the profit and loss statement. The reduction i g n carrying amount is reversed when there is a rise in the value of th e investment, or if the reasons for the reduction no longer exist. Please get sure about non recovery of the same. You need to show under exceptional item, otherwise your company profit not showing as per the business activity.

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