Nupath Foods

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Question; Discuss accounting for investment, clearly indicating the IAS for the disclosure of investment.

Accounting for Investments
* This Standard deals with accounting for investments in the financial statements of enterprises and related disclosure requirements.1

This Standard does not deal with:

(a) The bases for recognition of interest, dividends and rentals earned on investments which are covered by Accounting Standard 9 on revenue recognition;

(b) Operating or finance leases;

(c) Investments of retirement benefit plans and life insurance enterprises;

(d) Mutual funds and venture capital funds and/or the related asset management companies, banks and public financial institutions formed
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Main principles

Classification of Investments

An enterprise should disclose current investments and long term investments distinctly in its financial statements.

Further classification of current and long-term investments should be as specified in the statute governing the enterprise. In the absence of a statutory requirement, such further classification should disclose, where applicable, investments in:
(a) Government or Trust securities
(b) Shares, debentures or bonds
(c) Investment properties
(d) Others—specifying nature.

Cost of Investments
The cost of an investment should include acquisition charges such as brokerage, fees and duties.

If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost should be the fair value

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