Accounting Standard 13 - Accounting for investments (AS 13).This Standard deals with accounting for investments in the financial statements of enterprises and related disclosure requirements.If you like this article then please like us on Facebook so that you can get our updates in future ……….and subscribe to our mailing list ” freely “
- AS 5 Net Profit or Loss for the Period, Prior Period Items
- Accounting Standard 15: Accounting for Retirement Benefits
- Earning Per Share Complete Guide with Definition
- Accounting standard 2, Inventory valuation
Accounting Standard 13 - Accounting for investmentsThis Standard deals with accounting for investments in the financial statements of enterprises and related disclosure requirements.
- Recognition of interest, dividends and rentals earned on investments covered by AS 9
- Operating or finance leases
- Investment of retirement benefit plans and life insurance enterprises
- Mutual funds and venture capital funds and/or the related asset management companies, banks and public financial institutions formed under a Central or State Government Act or so declared under the Companies Act, 2013
Doesn't applicable to:
- Basis of accounting for interest, dividends etc.
- Investments of retirement benefit plans and life insurance enterprises.
- Mutual funds , AMCs, banks and Financial institutions.
- Venture capital funds .
Terms to be known :
Investment :Investments are assets held by an enterprise for earning income by way of dividends, interest, and rentals, for capital appreciation, or for other benefits to the investing enterprise. Assets held a stock-in-trade are not ‘investments’.
current investment :
long term investment :It's an investment other than a current investment.
Investment property :
Fair value :
Market value :It is the amount obtainable from the sale of an investmen in an open market, net of expenses necessarily to be incurred on or before disposal.
Valuation :Current Investment :
Long term investment :Long term ,other than current investments are valued at cost And Premium if any paid over redemption value to be amortised over the remaining period to maturity And only other than temporary diminution in value is provided. consider market value, assets of investee, expected cashflows etc. And carrying amount is determined on individual investment basis
Investment property :
On disposal :At the time of sale of investment Difference between carrying cost and sale value net of expenses is taken to P&L.
- Accounting policy.
- Classification of investments.
- Separately for long term and short term investments
- a) Income to be disclosed as gross and tds.
- b)show income from subsidiaries separately.
- Profit/loss on disposal.
- Changes in carrying amounts
- significant restrictions on ownership rights, realisability.