RECOGNITION OF INVESTMENTS – CA V G S Mani

  • Investments will be Initially recorded at “Cost”
  • Cost of Investments = Acquisition charge + Brokerage + Fees + Duties

Note:

  • If Investments are purchased by issue of shares or other securities, then cost of investment = Fair value of securities issued
  • If Investments are purchased by exchange of another asset, then cost of investment = Fair Value of the Asset given up or Fair value of the investment acquired whichever is more clearly evident

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