THOUGHT FOR THE DAY

Friendship

"The language of friendship is not words but meanings."

- Henry David Thoreau

TOPIC OF THE DAY

Accounting for investments

This Standard deals with accounting for investments in the financial statements of enterprises and related disclosure requirements.

This Standard does not deal with:
(a) the bases for recognition of interest, dividends and rentals earned on investments which are covered by Accounting Standard 9 on Revenue Recognition;
(b) operating or finance leases;
(c) investments of retirement benefit plans and life insurance enterprises;
and
(d) 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, 1956.

1 Shares, debentures and other securities held as stock-in-trade (i.e., for sale in the
ordinary course of business) are not ‘investments’ as defined in this Standard.
However, the manner in which they are accounted for and disclosed in the financial
statements is quite similar to that applicable in respect of current investments.
Accordingly, the provisions of this Standard, to the extent that they relate to current
investments, are also applicable to shares, debentures and other securities held as
stock-in-trade, with suitable modifications as specified in this Standard.

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LATEST ARRIVALS

Accounting for investments: equities, futures and options by R. Venkata Subramani