MEANING OF THE TERM “INVESTMENT” – CA V G S Mani

Investments are

  • Assets held by an enterprise
  • For earning income by way of
  • Dividends or
  • Interest or
  • Rentals or
  • Capital appreciation or
  • For other benefits to the investing enterprise.

Note:

  • 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 Statement
  • 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

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