In this article, we will explain about ICDS VIII and its difference with respective Notified AS.
ICDS VIII deals with securities held as stock-in-trade and securities held by a scheduled bank or public financial institutions.
i. in case of new business, the cost of securities available, if any, on the day of the commencement of the business
ii. in any other case, the value of the securities of the business as on the close of the immediately preceding previous year.
6. Unlisted shares shall be valued at actual cost initially recognized.
|Sl. No.||Basis||ICDS VIII||AS 13|
|1.||Coverage||ICDS VIII covers only securities||AS 13 covers investments in securities, properties, etc|
|2.||Classification||Classification of securities is done under categories, as, shares, debt securities and convertible securities||Classification of investments is done under the categories as, shares, debentures, bonds, Govt securities, investment properties|
|3.||Stock-in trade||Stock-in trade are covered in ICDS||Stock-in trade are out of the scope of AS13|
|4.||Valuation||Securities should be valued at lower of cost or net realizable value||Long term investments are valued at cost and current investments are valued at cost or fair value whichever is lower|
|5.||Unlisted shares||Unlisted shares shall be valued at actual cost initially recognized||Valuation of unlisted shares are not covered under AS 13|
For further reading on these series, check out our next article on ICDS IX.