Please Help: Accounting Treatment of Mutual Fund under IndAS
Posted Date : 07-Mar-2025 , 12:09:28 pm | Posted By: Akhilesh
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Accounts | Answers :
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Can you pls share the Accounting Treatment of Investment (such as Mutual Funds, property and other Financial Instruments) under IndAS |
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Answers:
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 Answer by: Kavya |
| here is it.
accounting of Investments under IndAS
Investment Type Relevant Ind AS Classification & Treatment
Mutual Funds Ind AS 109 (Financial Instruments) Measured at FVTPL (Fair Value Through Profit or Loss) – changes go to P&L
Equity Shares (Listed/Unlisted) Ind AS 109 Choice:
FVTPL (default)
FVOCI (Fair Value through OCI) – if not held for trading |
| Debt Instruments (e.g., Bonds) | Ind AS 109 | Depends on business model:
Amortised Cost
FVOCI
FVTPL |
| Investment Property (e.g., land/building held for rental or capital appreciation) | Ind AS 40 (Investment Property) | Measured at cost model (like PPE);
No fair value changes in books
Disclosure of fair value required |
| Subsidiary, Associate, JV | Ind AS 27 / Ind AS 28 |
Cost or
As per Ind AS 109 in separate FS
Consolidation rules apply in CFS |
???? Notes:
Always assess intent of holding (trading, collecting cash flows, or appreciation).
Fair value changes are mostly routed through P&L or OCI, depending on classification.
Disclosure requirements under Ind AS are extensive, especially for fair value hierarchy.
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