16 November 2012
hello friends, i ve a prob in as 13 so pls suggest me. the prob is-
suppose there is an investment by a company in a sceame framed by a portfolio co. in which the co has to invest 10 lac annualy for 4 yrs and the portfolio co will invest the received money in various equity shares and mutual fund of real estate project/company. the portfolio co send half yrly and yrly statement regarding the investment to the investor co. now the prob is that the investment is long term or current investment in the hands of investor co. i also want to know the reason. pls reply soon
19 November 2012
In my point of view you are mixing the two different entities. Every time the investment will be made by the company, it should be capitalized in the books of the company. however, treatment will be different in the books of accounts of portfolio company.