Accounting for Investments


This chapter will help the readers to:

  • Understand issues involved in accounting and reporting of investments.
  • Classify investments into different categories.
  • Account for fair value changes in different categories of investments.
  • Understand the impact of investment accounting on financial statements of an entity.
  • Appreciate the requirements of Ind AS 109 and Ind AS 28 relating to investments.

An entity may invest in the financial instruments (e.g., shares and debentures) issued by another entity. These investments are not made for the purpose of manufacturing, administrative or marketing activities of the investors. Investment may be made with the intention to earn periodic ...

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