Please Help: AS 13
Posted Date : 29-May-2012 , 11:41:02 am | Posted By Arihant
As per AS 13: accounting for investment, investment which are long term in nature are valued at cost price only. IF THERE IS PERMANENT DECLINE IN INVESTMENT, THEN SUCH DECLINE SHOULD BE RECOGNIZED.
what does it mean by recognising?
what does it mean by recognising?
Category : Accounts | Answers : 1 | Comments : 1 | Hits : 244
Answers
Answer By: Rishabh Upadhyay
o recognise permanent loss in the value of long term business investment you will need to pass a P& L entry ( Loss on investment a/c dr. To Investment A/c) that will reduce the value of investment in balance sheet and loss will be charged to P&L A/c
Comments
SHIKHA SONI
29-May-2012 , 04:26:13 pmRecognising means the amount by which the investment is declined resultant reduction in the carrying amount of investment is to be charged to profit and loss account in the year in which in which it is declined and also it should be increase when there is rise in the value of investment