alleryStart learning →Cost Rs 60,000, written down to Rs 52,000; fair value is now Rs 70,000. New carrying amount?
ARs 52,000
BRs 70,000
CRs 60,000
DRs 65,000
Answer & Solution
Correct answer: C. Rs 60,000
Carrying amount cannot exceed cost under the lower-of-cost-and-fair-value rule, so it is restored only to 60,000.
Keep practising AS 13 Accounting for Investments
Browse all AS 13 Accounting for Investments questions for CA Inter, or explore more Accounting topics.
Related questions
Profits on disposal of current and long-term investments are shown:Statements classify fixed assets, investments and current assets into:A readily realisable investment is meant to be held for 18 months. It is:A readily realisable investment made on 1 April is intended to be sold on 15 February nextIf dividend cannot be allocated except arbitrarily, cost is cut only if it:Interest and rentals on investments are shown separately for:A significant restriction on selling an investment must be:Disclosure of investments must include the policies for determining: