Long Term Investments

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Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2009 Can long-term investments be revalued?

shakuntala chhangani

shakuntala chhangani (Expert)
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02 December 2009 If there is permanent decrease in long term investments then it needs to be revalued as per AS 13. however subsequent permanent increase need to be adjusted to the extent of pervious decrease. Regards,
CA Shakuntala Chhangani

Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2009 How to revalue the long-term investments?

What does AS 13 states for it?

I think AS 13 just states about the diminishing in the value of investments.

There is no priciple as such for revaluation of long term investments?

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CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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06 December 2009 As per AS-13; in case there is a decrease in the value of long term investment which is of permanent nature :-

Loss in Long Term Investment a/c Dr
To Respective Investment a/c

Transfer it to profit and loss account.

When there is any increase (may be above the cost of long term investment) then reverse the above entry and bring the Investment a/c to its original price.

Indicators of value of an investment -

1. Market Value 2. Assets and Results of Investee Co. 3. Type and extent of stake in the investee co.

CA Rakhecha,
Surat