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Accounting treatment of loss on investment
07-14-2009, 11:15 PM
Post: #1
Accounting treatment of loss on investment
How is loss loss on investment accounted for in the financial statements from the trial balance to the balance sheet.
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07-15-2009, 02:01 AM
Post: #2
 
The value of the Investments (Asset) in the Balance Sheet should be reduced by the amount of the "loss on investment" mentioned in the trial balance.
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07-15-2009, 02:03 AM
Post: #3
 
Retained Profit will also be reduced by the same amount....if it was not included as an expense in the P&L.
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08-26-2009, 05:25 PM
Post: #4
 
The losses of investmetn is capital loss. according to my point of view these losses against capital gains for examle loss from property is adjusted against the gain from property.



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Shahid Amin
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08-27-2009, 01:34 PM
Post: #5
 
Treatment mentioned by Odysee is correct. Hence loss on investment is capital loss so it will be adjusted against investment in the balance sheet.

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Awais Aftab
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09-03-2009, 04:56 PM
Post: #6
 
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by awaisaftab</i>
<br />Treatment mentioned by Odysee is correct. Hence loss on investment is capital loss so it will be adjusted against investment in the balance sheet.

Regards,

Awais Aftab
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Sir I have a question
If investment in balance sheet is lees than the loss on investment then what will we do?
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09-26-2009, 08:25 PM
Post: #7
 
Dear,

Are you asking for impairment loss of investment or loss on sale of investment. Please elaborate your question in detail.
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09-29-2009, 08:45 PM
Post: #8
 
loss on investment is taken into account equal to the amount of investment in that company.
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