investment

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09 August 2010 hi

what is the difference between trade investments and non-trade investments

Aditya Maheshwari

Aditya Maheshwari (Expert)
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09 August 2010 As per AS - 13

3.1 Investments are assets held by an enterprise for earning income by way of dividends, interest, and rentals, for capital appreciation, or for other benefits to the investing enterprise. Assets held as stock-in-trade are not ‘investments’.

3.2 A current investment is an investment that is by its nature readily realisable and is intended to be held for not more than one year from the date on which such investment is made.

3.3 A long-term investment is an investment other than a current investment.