alleryStart learning →The cost formula for securities held as stock-in-trade follows:
AAS 16 Borrowing Costs
BAS 9 Revenue Recognition
CAS 2 Valuation of Inventories
DAS 26 Intangible Assets
Answer & Solution
Correct answer: C. AS 2 Valuation of Inventories
Cost of such securities disposed is found by FIFO or average cost, the formulae set by the inventory standard.
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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: