Valuation of Investment

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SATHEESH

SATHEESH (Querist)
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24 May 2011 What is the treatment of "loss due to fall in Market Value of Shares" in computation of total income?

U S Sharma

U S Sharma (Expert)
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24 May 2011 no such provision

investment would stay at cost untill it is booked/ sold.

amit

amit (Expert)
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24 May 2011 Hi Satheesh,

Actually thats depends on the nature of investments i.e Held for maturity or Available for trade (IFRS). If it is AFS then change in Market value will not have any effect on P&L and if the investment is held for trading purpose then the unrealized gain or loss will charge to P&L.

Regards

Amit

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SATHEESH

SATHEESH (Querist)
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24 May 2011 Investment is short term and held for trade..

amit

amit (Expert)
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24 May 2011 then the effect for unrealized gain or loss will go to the P&L and value of the investment in B/S will be reduced by the same amount.