What are the provisions about non - current investments?

Non-current Investments
Investments are required to be classified into current and non-current categories. Non-current investments are to be presented under 'non-current assets' and current investments under 'current assets'. Thus, there is no separate main heading of 'investments'.
There may be an issue in defining the term 'current investment' which has a specific meaning under AS 13 i.e., "an investment – that is by its nature readily realisable and is intended to be held for not more than one year from the date on which such investment is made".
As per the definition of 'current asset' in the revised Schedule, the period of realisation is "within 12 months after the reporting date".
The revised Schedule specifically provides that it shall stand modified in case of a conflict with the requirements of any accounting standard.
Thus, it follows that primacy should be given to AS 13 even with respect to the presentation requirements (even if this results in an anomaly vis-a-vis current/ non-current distinction as per the revised Schedule).
Non-current investments are to be sub-classified in the notes as trade investments and other investments. Investments falling under each of these classifications should be further classified in the notes as :
  1. Investment property
  2. Investments in equity instruments
  3. Investments in preference shares
  4. Investments in Government or trust securities
  5. Investments in debentures or bonds
  6. Investments in mutual funds
  7. Investments in partnership firms
  8. Other non-current investments (specifying nature)
Under each classification, further details are required to be disclosed including names of the bodies corporate (indicating separately whether such bodies are : (i) subsidiaries, (ii) associates, (iii) joint ventures, or (iv) controlled special purpose entities.
Apart from the above, the following shall also be disclosed :
  1. Aggregate amount of quoted investments and market value thereof
  2. Aggregate amount of unquoted investments
  3. Aggregate provision for diminution in value of investments
The requirement of existing Schedule VI regarding disclosure, by companies other than investment companies, of investments purchased and sold within the reporting period has been done away with.

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