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TMI BlogICDS VIII : SecuritiesX X X X Extracts X X X X X X X X Extracts X X X X ..... and nonscheduled banks. PART A 1. Scope:- This part of Income Computation and Disclosure Standard deals with securities held as stock-in-trade. Therefore, in respect of securities not held as stock-in-trade, the tax treatment would be governed by normal provisions of the Act. ICDS IV - Revenue Recognition, which deals with interest and dividend, applies to all securities, whether held as stock-in-trade or otherwise. Securities held by persons engaged in business of insurance, securities held by mutual funds, venture capital funds, banks and public financial institutions are specifically excluded from the scope of Part A. Securities held by foreign institutional investors are treated as capital assets under the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cquisition would be accounted for as income. (b) In case a security is acquired in exchange for other security, the fair value of security so acquired shall be its actual cost. Also, in case a security is acquired in exchange of another asset, the fair value of security so acquired shall be its actual cost. The gain or loss arising on account of transfer of security or asset would be accounted in the profit and loss account. However, if the asset exchanged belongs to a block of assets, such credit of value shall be taken to the relevant block of assets. Note: While comparining the provisions of this Part of ICDS with that of AS 13 in case of acquisition of securities in exchange of other securities or another asset, the basis of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en though the NRV may be lower. (d) Closing value of security at the end of preceding year is to be considered as value of security at the beginning of the year. Although, it is not specifically mentioned under AS 13 and Ind AS 109, the balance at the beginning of the period is the value of the closing stock brought forward from the previous period. Note: The difference arising on account of valuation of securities held at the end of the previous year as stock-in-trade under this Part of ICDS and AS 13/Ind AS 109 may end up in the creation of deferred tax asset/ liabilities, as the case may be. PART B 1. Scope:- Unlike Part A, Part B deals with securities held by specific entities, namely Scheduled banks or public fin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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