QUESTION 155 Blue-chip Equity Investments Ltd., wants to re-classify its investments in accordance with AS 13 (Revised).

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Question 155 Blue Chip Equity Investments Ltd Wants To Re Classify Its Investments In Accordance With As 13 Revised 1 (52.56 KiB) Viewed 30 times

QUESTION 155 Blue-chip Equity Investments Ltd., wants to re-classify its investments in accordance with AS 13 (Revised). State the values, at which the investments have to be reclassified in the following cases: (i) Long term investments in Company A, costing * 8.5 lakhs are to be re-classified as current. The company had reduced the value of these investments to 6.5 lakhs to recognise 'other than temporary' decline in value. The fair value on date of transfer is 6.8 lakhs. (ii) Long term investments in Company B, costing # 7 lakhs are to be re-classified as current. The fair value on date of transfer is 8 lakhs and book value is *7 lakhs.