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AS-13
Accountancy
If a company purchase shares of another company of rs 8 lac by the way of exchanging it's machinery having book value of Rs- 10 lac so what will be the cost of acquisition of investment as per AS-13
Answers (3)
If an investment is acquired in exchange, or part exchange, for another asset, the acquisition cost of the investment is determined by reference to the fair value of the asset given up. It may be appropriate to consider the fair value of the investment acquired if it is more clearly evident. So you have to take FV of machine. And if the FV of investment is more evident, you would consider that.
CA Suraj Lakhotia Admin
If an investment is acquired in exchange, or part exchange, for another asset, the acquisition cost of the investment is determined by reference to the fair value of the asset given up. It may be appropriate to consider the fair value of the investment acquired if it is more clearly evident. So you have to take FV of machine. And if the FV of investment is more evident, you would consider that.
Sir what it means by 'more clearly evident value ' Can you please give example of that