[Illustrative Checklist] Disclosure requirements under AS 13 | Accounting for Investments

The objective of AS 13, Accounting for Investments, is to prescribe the accounting for investments in the financial statements of enterprises and related disclosure requirements. The enterprises are required to disclose the current investments (realisable in nature and intended to be held for not more than one year from the date of its acquisition) and long terms investments (other than current investments) distinctly in their financial statements. The cost of investments should include all acquisition costs (including brokerage, fees and duties) and on disposal of an investment, the difference between the carrying amount and net disposal proceeds should be charged or credited to profit and loss statement.

As per the stipulation of this standard, an entity must comply with the below-mentioned disclosure requirements:

I. Whether the accounting policies for the determination of carrying amount of investments disclosed

II. Has entity disclosed the information about the investments which are classified into current investments and long-term investments distinctly in its financial statements

III. Whether the current and long- term investments have been further classified as specified in the statute governing the enterprise

IV. In the absence of a statutory requirement, whether investments have been further classified and disclosed, where applicable, as investments in –

a) Government or Trust securities

b) Shares, debentures or bonds

c) Investment properties

d) Others (specifying nature)

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