VIII - Securities (w.e.f. AY 2017-18)

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..... sure Standard, the provisions of the Act shall prevail to that extent. Part A Scope 1. This part of Income Computation and Disclosure Standard deals with securities held as stock-in-trade. 2. This part of Income Computation and Disclosure Standard does not deal with: ( a ) the bases for recognition of interest and dividends on securities which are covered by the Income Computation and Disclosure Standard on revenue recognition; ( b ) securities held by a person engaged in the business of insurance; .....

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..... harges such as brokerage, fees, tax, duty or cess. 6. Where a security is acquired in exchange for other securities, the fair value of the security so acquired shall be its actual cost. 7. Where a security is acquired in exchange for another asset, the fair value of the security so acquired shall be its actual cost. 8. Where unpaid interest has accrued before the acquisition of an interest-bearing security and is included in the price paid for the security, the subsequent receipt of interest is allocated between pre-acquisition and post-acquisition periods; the pre-acquisition portion of the interest is deducted from the actual cost. Subsequent Measurement of Securities 9. At the end of any previous year, se .....

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..... t not quoted on a recognised stock exchange with regularity from time to time, shall be valued at actual cost initially recognised. 13. For the purposes of paras 9, 10 and 11 where the actual cost initially recognised cannot be ascertained by reference to specific identification, the cost of such security shall be determined on the basis of first-in-first-out method or weighted average cost formula. Part B Scope 1. This part of Income Computation and Disclosure Standard deals with securities held by a scheduled bank or public financial institutions formed under a Central or a State Act or so declared under the Companies Act, 1956 (1 of 1956) or the Companies Act, 2013 (18 of 2013). Definitions 2(1) The following te .....

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