Sumant Gajanan Sathe
(Service)
(59 Points)
Replied 22 February 2011
Investments referred in AS4 are non current investments, & if you remember / know non-current investments are always carried at historical cost.
reason behind carring long term investments at historical cost may be that in long term price/ market value is less volatile.
if doubt persist, contact any expert.
thank u.
Sumant Gajanan Sathe
(Service)
(59 Points)
Replied 22 February 2011
there is 1 more thing though circumstances existing on balance sheet date , it will be difficult to prove that those circumstances will result in declining in value of investments for long term.
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