Question

27. The current investments are valued on closing date at
(a) Market value
(b) Cost of pure
c) Lower of cost and market value
(d) Higher of cost and fair value ​

Answer 1

The current investments are valued on the closing date at market value.

Explanation:

• The current investment is held for one year from the date of issuance to the closing date.
• An investment is a way of earning money by rentals, dividends, and interest.
• Such investment is made by the enterprises.
• Investment is an asset that is held as stock in trade as per the market value or market price.

Answer 2

Answer

Current investment is valued at:

Lower of cost and market value

As per AS - 13