9911796707
TMI BlogVIII - Securities (w.e.f. AY 2017-18)X X X X Extracts X X X X X X X X Extracts X X X X ..... e Standard, the provisions of the Act shall prevail to that extent. Part A Scope 1. This part of Income Computation and Disclosure Standard deals with securities held as stock-in-trade. 2. This part of Income Computation and Disclosure Standard does not deal with: (a) the bases for recognition of interest and dividends on securities which are covered by the Income Computation and Disclosure Standard on revenue recognition; (b) securities held by a person engaged in the business of insurance; (c) securities held by mutual funds, venture capital funds, banks and public financial institutions formed under a Central or a State Act or so declared under the Companies Act, 1956 (1 of 1956) or the Companies Act, 2013 (18 of 2013). D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the price paid for the security, the subsequent receipt of interest is allocated between pre-acquisition and post-acquisition periods; the pre-acquisition portion of the interest is deducted from the actual cost. Subsequent Measurement of Securities 9. At the end of any previous year, securities held as stock-in-trade shall be valued at actual cost initially recognised or net realisable value at the end of that previous year, whichever is lower. 10. For the purpose of para 9, the comparison of actual cost initially recognised and net realisable value shall be done categorywise and not for each individual security. For this purpose, securities shall be classified into the following categories, namely:- (a) shares; (b) debt secu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot;Scheduled Bank" shall have the meaning assigned to it in clause (ii) of the Explanation to clause (viia) of sub-section (1) of section 36 of the Act. (b) "Securities" shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contract (Regulation) Act, 1956 (42 of 1956) and shall include share of a company in which public are not substantially interested; 2(2) Words and expressions used and not defined in this part of Income Computation and Disclosure Standard but defined in the Act shall have the meaning respectively assigned to them in the Act. Classification, Recognition and Measurement of Securities 3. Securities shall be classified, recognised and measured in accordance with the extant ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
