New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which among the following is outside the scope of AS-13?

    A Land and Buildings for operational use Correct Answer Incorrect Answer
    B Financial Instruments for capital appreciation Correct Answer Incorrect Answer
    C Financial Instruments for earning interest or dividend income Correct Answer Incorrect Answer
    D Property for rental purpose Correct Answer Incorrect Answer
    E All are covered under the scope of AS-13 Correct Answer Incorrect Answer

    Solution

    As per AS 13, investments are assets held by an enterprise for: o   earning income by way of dividends, interests and rentals , or o   for capital appreciation , or o   for other benefits to the investing enterprise ·         Assets held as stock-in-trade are not ‘Investments’. ·         Investments in shares, debentures, bonds, etc. held for the purpose as referred to in above are considered as investments. ·         Similarly, investments in land or building that are not intended to be occupied substantially for use by, or in the operation of the investing enterprise, are covered under AS 13 as Investment Property .

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