Marketwire

The Mirage of Book Values

We compared the book values of investments with the current market values of those investments and found that the former is below the latter

The Mirage of Book Values

As per the Accounting Standard 13, non-current assets/long-term investments are measured at their purchase prices. Since the outlook for non-current assets is long, they are not adjusted for gains/losses as per their fair values/market prices in the balance sheet at the end of each year. A permanent reduction in the market value is only accounted for.


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