WHETHER WE CAN SHOW APPRECIATION IN THE VALUE OF MUTUAL FUND AS INCOME ? IF YES THEN WHETHER ITS REQUIRE TO SHOW AS SEPERATELY IN SHEDULES OR WILL BE CONSIDER IN GROUPING. (BALANCE HAVE MINOR INCOME COMPARE TO TOTAL INCOME).
Ameet (L) (1678 Points)
28 May 2010WHETHER WE CAN SHOW APPRECIATION IN THE VALUE OF MUTUAL FUND AS INCOME ? IF YES THEN WHETHER ITS REQUIRE TO SHOW AS SEPERATELY IN SHEDULES OR WILL BE CONSIDER IN GROUPING. (BALANCE HAVE MINOR INCOME COMPARE TO TOTAL INCOME).
First!!!!
(student)
(162 Points)
Replied 28 May 2010
No you cannot... Investments are to be valued at cost or market value whichever is lower.. Just mention it as a note under the mutual funds the M.V. of such funds..
Rgds
CA Mukul Mittal
(CA in practice)
(384 Points)
Replied 03 June 2010
mutual funds are to be shown in the books at their respective market value
so, should be recognised
as far as for grouping, if it is necessary to show individually, show them individually
Ameet
(L)
(1678 Points)
Replied 03 June 2010
CA Amit Kumar Khaitan
(Research Analyst)
(360 Points)
Replied 05 June 2010
I think there is a guidance Note on accounting for Mutual funds and yes they do have to consider appreciation in investments... atleast just for the sake of preparing financial statements
Priyanka
(Article Assistant)
(31 Points)
Replied 07 June 2010
Mutual Funds should be valued at Net Asset Value(NAV) as on that date. And,if any profit/loss arising on such valuation, it should be recognised in the Profit & loss account.
CA Shiv
(Business Controller)
(2987 Points)
Replied 07 June 2010
according to me.. if you are holding Mutual fund as stock than only the concept of NAV and cost will apply.
If you holding it as investment than value it at cost only and at time of sale, do consider the profit and loss and offer for tax.
Also Guidance notes on Mutual fund does not exist now after applicability of AS 30 from 1.4.2009....
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