Classification of investments governs carrying amounts and disclosure obligations, distinguishing current and long term treatment in financial statements. Investments are classified as current or long term with current investments carried at the lower of cost and fair value and reductions and reversals recognised in profit and loss; long term investments are carried at cost with provision for diminution other than temporary taken individually and charged to profit and loss, reversible if reasons for reduction cease. Cost includes acquisition charges and fair value where issued or exchanged; transfers between categories and disposal allocations follow specified conservative rules, and comprehensive disclosure of policies, classifications, income, gains/losses, restrictions and aggregate quoted/unquoted amounts is required.