alleryStart learning →If dividend cannot be allocated except arbitrarily, cost is cut only if it:
Aclearly recovers cost
Bexceeds the tax paid
Cis declared in cash
Darrives after year end
Answer & Solution
Correct answer: A. clearly recovers cost
When allocation is arbitrary, a deduction from cost is made only for amounts clearly returning part of the cost.
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 nextInterest 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:Shares bought for Rs 2,00,000 carry brokerage of 1% and stamp duty of 0.25%. Cost?