AS-13

This query is : Resolved 

18 August 2009 Lont term investments are valued at cost, however if there is permanent decline then it should be consider while determining the value.
My qusetion is how to ascertain such decline in the value of the investment?

Thanks in advance

18 August 2009 Long-term investments are usually carried at cost. However, when there is a decline, other than temporary, in the value of a long term investment, the carrying amount is reduced to recognise the decline.
Indicators of the value of an investment are obtained by reference to its market value, the investee’s assets and results and the expected cash flows from the investment. The type and extent of the investor’s stake in the investee are also taken into account. Restrictions on distributions by the investee or on disposal by the investor may affect the value attributed to the investment.
[para 33 of AS-13]


see:- http://www.mca.gov.in/MinistryWebsite/dca/notification/pdf/AS_13.pdf

18 August 2009 Thanks manmohan.


18 August 2009 urs always welcome



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries