Acconting Standard 13

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2011 AS13 says that carrying amount of Long Term Investment usually at Cost, or
if there is decline in value of investment which is not temporary, then carrying amount of investment is reduced by the amount of such decline.
My doubt is if there is an increase in value of investment after 1 year of purchase of such investment which is not temporary, then what would be the carrying amount of investment for the purpose of Balance sheet?

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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26 April 2011 if increase in value of investment(which is not temporary) then increase in carrying amount of investment should be make.

Querist : Anonymous

Querist : Anonymous (Querist)

27 April 2011 thank you sir.
but would you plz explain me with a short example. I want reason behind this, that why we take increase part in Balance Sheet.

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CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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27 April 2011 becouse "True and Fair view of financial statement".
true value of investment should be appear in B/S.