Question

If a long-term investment suffers a permanent decline in

value, how should it be accounted for under AS 13?

A The investment should be reclassified as a short-term investment.

B The loss should be ignored.

C The carrying amount should be reduced and charged to the Profit and Loss Account

D The loss should be adjusted against retained earnings.

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Question

If a long-term investment suffers a permanent decline in

Solution

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