PPT: Accounting Standards (13) | Advanced Accounting for CA Intermediate PDF Download

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ACCOUNTING 
STANDARD- 13
ACCOUNTING FOR 
INVESTMENT
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ACCOUNTING 
STANDARD- 13
ACCOUNTING FOR 
INVESTMENT
ACCOUNTING FOR INVESTMENT
The Statement deals with accounting for investments
in the financial statement of enterprises and related 
disclosures.
INVESTMENTS
Investment are the assets held by an enterprise for 
earning income by way of dividend, interest and 
rental for capital appreciation or for other benefits to 
the investing enterprise.
Assets held as stock-in-trade are not investment.
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ACCOUNTING 
STANDARD- 13
ACCOUNTING FOR 
INVESTMENT
ACCOUNTING FOR INVESTMENT
The Statement deals with accounting for investments
in the financial statement of enterprises and related 
disclosures.
INVESTMENTS
Investment are the assets held by an enterprise for 
earning income by way of dividend, interest and 
rental for capital appreciation or for other benefits to 
the investing enterprise.
Assets held as stock-in-trade are not investment.
DOESN’T APPLICABLE TO
This Statement does not deal with:-
(a)The bases for recognition of interest, dividend, 
and rental earned on investment which are 
covered by AS-9 on Revenue Recognition.
(b)Operating or Finance lease.
(c)Investment of retirement benefit plans and life 
insurance company and 
(d)mutual funds and/or related asset 
management companies, bank and public 
financial institution.
(e) Venture Capital Fund
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ACCOUNTING 
STANDARD- 13
ACCOUNTING FOR 
INVESTMENT
ACCOUNTING FOR INVESTMENT
The Statement deals with accounting for investments
in the financial statement of enterprises and related 
disclosures.
INVESTMENTS
Investment are the assets held by an enterprise for 
earning income by way of dividend, interest and 
rental for capital appreciation or for other benefits to 
the investing enterprise.
Assets held as stock-in-trade are not investment.
DOESN’T APPLICABLE TO
This Statement does not deal with:-
(a)The bases for recognition of interest, dividend, 
and rental earned on investment which are 
covered by AS-9 on Revenue Recognition.
(b)Operating or Finance lease.
(c)Investment of retirement benefit plans and life 
insurance company and 
(d)mutual funds and/or related asset 
management companies, bank and public 
financial institution.
(e) Venture Capital Fund
DEFINITION
Investment classified as long term investment and 
current investment. 
CURRENT INVESTMENT
A Current investment is an investment that by its 
nature readily realisable and is intended to be held 
for not more than one year from the date on which 
such investment is made. Current investment are in 
the nature of current assets.
LONG TERM INVESTMENT 
A Long term investment other than a current 
investment.
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ACCOUNTING 
STANDARD- 13
ACCOUNTING FOR 
INVESTMENT
ACCOUNTING FOR INVESTMENT
The Statement deals with accounting for investments
in the financial statement of enterprises and related 
disclosures.
INVESTMENTS
Investment are the assets held by an enterprise for 
earning income by way of dividend, interest and 
rental for capital appreciation or for other benefits to 
the investing enterprise.
Assets held as stock-in-trade are not investment.
DOESN’T APPLICABLE TO
This Statement does not deal with:-
(a)The bases for recognition of interest, dividend, 
and rental earned on investment which are 
covered by AS-9 on Revenue Recognition.
(b)Operating or Finance lease.
(c)Investment of retirement benefit plans and life 
insurance company and 
(d)mutual funds and/or related asset 
management companies, bank and public 
financial institution.
(e) Venture Capital Fund
DEFINITION
Investment classified as long term investment and 
current investment. 
CURRENT INVESTMENT
A Current investment is an investment that by its 
nature readily realisable and is intended to be held 
for not more than one year from the date on which 
such investment is made. Current investment are in 
the nature of current assets.
LONG TERM INVESTMENT 
A Long term investment other than a current 
investment.
INVESTMENT PROPERTY
An investment property is an investment in land or 
building that are not intended to be occupied 
subsequently for use by or in the operation of, the 
investing enterprises. This may be typical of a 
company dealing in properties.
MARKET VALUE OF INVESTMENT 
It is the amount obtainable from the sale of 
investment in an open market, net of expenses 
necessarily to be incurred on or before disposal.