Accounting for investment in mutual fund

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Gayan Manaranga (Querist)
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11 February 2014 Hi,

Can some one help me to find out the accounting treatment for the investment in mutual funds,

at present I'm carrying the value in balance sheet at cost method and recent statements show a significant drop in the NAV. Should i follow the IAS 39 and account these on fair value method?

thanks

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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11 February 2014 Since you have been treating MF as investment it is to be shown as at cost. Now, if you want to treat this as stock in trade then take the value as per market rate and then the difference is to be treated as profit or loss as the case may be and show as stock in trade.

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