Financial statement of companies

Accountancy

Under the calculation of "effective capital" topic What is the reason investment amount is not included in the effective capital of investment company.

venkatesh sundharamoorthy

CA Final

★ 34K+

19-Aug-21 11:32

549

Answers (1)

Investment for a non investment company is an asset made with intention of future economic benefits. However investments for an investment company is an item of ordinary operations. Hence its not considered when calculating effective capital.

roshini reddy

CA Inter

★ 1K+

19-Aug-21 11:58