S.No.

Scope of ICDS

Particulars

VIII

Securities

1. Scope - Treatment of Securities held as Stock in trade.

2. Out of scope - Reconginition of interest & dividend on securties (covered by ICDS -IV) , Securities held by Insurance companies , Securities held by mutual fund, venture capital funds , banks & public financial institutions.

3. Terms used - Fair value: Price of Arm length transaction of willing buyer or seller , Securities : Except derivatives , same as meaning assigned in sec.2 of SCRA, 1956.

4. Recognition and Initial Measurement of securities - At Actual Cost.

5. Actual Cost - Purchase price and all acquisition costs i.e.brokerage, fees, tax, duty or any cess.

6. In case securities acquired in exchange of securities or other assets  - Fair value of such securities received will be termed as actual cost.

7. In case of Interest bearing securities purchased which includes accrued interest - On receipt of interest after acquisition, Pre acquisition portion of interest will be deducted from the actual cost.

8. Subsequent measurement of Securities - At the year end  , securities will be value at actual cost or NRV, which ever is less. - Listed Securities

9. Comparison between actual cost or NRV will be based on categories of securities. 4 categories named Shares, Debt securities , Convertible securities and any othe securities not covered in earlier categories.

10. Cost calculation will be done using FIFO method.

11. Unlisted Securities or listed but quotes are not regularily available , will be valud at actual cost only.

12. In subsequent year, opening balance - Closing balance as at last day of the previous year. In case new business started in previous year - Balance as at the start day of the business.