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As - 13 valuation of investments

CA CS Rahul (Finance) (41 Points)

19 February 2013

Is upward revaluation of Investments is possible by any means by an Unlisted company for its investments in the shares of any other listed company ?

Is (upward) revaluation of Investments is possible by any means for an Unlisted company for its investments in shares of any other listed companies?????

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Modify Is (upward) revaluation of Investments is possible by any means for an Unlisted company for its investments in shares of any other listed companies?????

Read more at: /forum/details.asp?mod_id=239099&offset=1#.USL-Q_IwDFw

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5 Replies

CA Kedar Sakhardande (Proprietor) (942 Points)
Replied 19 February 2013

Yes it is possible provided that you can justify that increase in the value of investment is of permenent nature

kedar

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siddhartha (asd) (21 Points)
Replied 19 February 2013

Yes Only thing you ve to see is tht the revaluation is of a permanent nature

CA Ashish Pathak (Employed at Cipla Ltd.) (2779 Points)
Replied 19 February 2013

I beg to differ with above mentioned views. First of all, you need to specify that the Investment in shares is Current Investments or a Long Term Investment. The AS-13 on Accounting for Investments clearly states that in case of long term investments, temporary fluctuation in value should be ignored. However if there is a permanent diminution/reduction in value then it should be revalued downwards by charging it to P&L. Now suppose if there is any subsequent increase in market value then it can be revalued upwards only the extent of Original cost. In any case the carrying amount cannot exceed the cost. You can revalue upwards but it should be limited to the extent of original cost of investment.

CA Ashish Pathak (Employed at Cipla Ltd.) (2779 Points)
Replied 19 February 2013

Even if it is current investments, you need to follow the same treatment for upward revaluation i.e the upward revaluation is to be limited to the extent of cost. In no case, the carrying amount of investment should exceed the cost.

MANOJ (Proprietor) (32 Points)
Replied 01 September 2018

There is no provision under AS-13 for upward revision only under ind as can be done. As 13 allows upward revision only if previsiouly value is reduced and subsequently it recovered so to that extent it can be increased.