Forums

Back

Closing value of investment

Accountancy

If a company purchase a share of x ltd at rs 100 and during the year another share is purchased at rs 90 , no sale is occur ,FIFO method is used by company, market value at the end is 94 rs What will be the carrying value of investment

Atharv Sankliya

CA Final

★ 3K+

26-Jan-23 13:18

381

Answers (7)

Best Answer

Seemran Singh

FV = 94*2 = 188 Cost = 100+90= 190 So recorded at 188

This is correct because both shares come under same category and their combined cost should be compared with market value as per AS13.

Attachments

Screenshot_2023-02-14-09-50-36-47_45fb746795678a1ded33faef3c58e9c7.jpg

Samayamanthula Vivek

CA Final

★ 5K+

14-Feb-23 09:52

If the investments are current investments, they have to be valued at cost or fair value (market value) whichever is lower.

Varshaa M

CA Final

★ 35K+

26-Jan-23 18:23

Varshaa M

If the investments are current investments, they have to be valued at cost or fair value (market value) whichever is lower.

Yes i know that but what will be the carrying value in above case if it is current investment

Thread Starter

Atharv Sankliya

CA Final

★ 3K+

26-Jan-23 18:24

FV = 94*2 = 188 Cost = 100+90= 190 So recorded at 188

Seemran Singh

CA Final

★ 4K+

27-Jan-23 16:41

90 +94

mani charan

CA Final

★ 3K+

13-Feb-23 21:46

Samayamanthula Vivek

This is correct because both shares come under same category and their combined cost should be compared with market value as per AS13.

But fifo is followed

mani charan

CA Final

★ 3K+

14-Feb-23 12:28

mani charan

But fifo is followed

Ok understood

mani charan

CA Final

★ 3K+

14-Feb-23 12:28