mohit gupta (intern, CA Final) (81 Points)
26 January 2013
Please solve the following query in Revised Schedule VI:
Under category of Current Liabilities and Current Assets
"It is held primarily for the purpose of being traded'
What is the meaning of this line?
mohit gupta
(intern, CA Final)
(81 Points)
Replied 26 January 2013
what about its meaning under current liabilities????????
%$ anil ....article trainee
(help ever fnd forever)
(204 Points)
Replied 27 January 2013
"It is held primarily for the purpose of being traded'
its all about(current liabilities) transactions are related purily with business nd whch r expressed in monetary terms::::nd used for day to day operations i.e. nthg but with in a period of one year dude...
mohit gupta
(intern, CA Final)
(81 Points)
Replied 27 January 2013
Thanks but could not relate the meaning ...Please reply comprehensively
"It is held primarily for the purpose of being traded"
This line is required to be understood in context of financial instruments say options & futures , so these financial instruments which are primarily held for the purpose of being traded are covered under the head Current Assets & Current Liabilities.
Akshay
(CA-Final)
(105 Points)
Replied 27 January 2013
mohit gupta
(intern, CA Final)
(81 Points)
Replied 28 January 2013
I have unerstood its meaning under current assets?
What about current liabilities?
Why the word "Traded" being used here?
Jagruti Arolkar
(TAXATION)
(91 Points)
Replied 28 January 2013
"It is held primarily for the purpose of being traded'
This is one of the condition , to classify current or non current. This condition is only applicable to assets . ( Relevant for Inventories , as inventories always current asset as per ICAI FAQ)
CA Parul Saxena
(CA)
(8487 Points)
Replied 28 January 2013
In case of Current Liabilities it is in the context of Financial Instruments like...options, futures etc.
satya
(article)
(45 Points)
Replied 28 January 2013
I think that this phrase, in context of Current assets represents Debtors and stock in trade..
and wrt current liabilities, it represents creditors...
It relates to purchases and sales of the company..
It may not be necessarily in the physical form..
This is my opinion and please let me know if any thing is wrong.
siddharth jain
(ca- ipcc)
(197 Points)
Replied 01 February 2013
'held for the purpose of trading' under the heading 'current liabilities' means financial instruments like future & options .
These instruments are held for the purpose of trading by short term investors .
CAclubindia
