Accounting for Investments

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 Abstract
The research analysis was comprised on accounting for investment in which different types of
accounting methods and evaluation strategic decision making process have been evaluated. The
research analysis was consisted on primary and secondary data and information in which 5-likert
scale questionnaire has been used for analysis. The data was analyzed on SPSS software and the
required results collected accordingly. The research data analysis indicates that most of the
respondents were agreed that accounting is very important for any investment decision making
process and the person should be able to have proper knowledge to calculate the investment risk
and profit on the basis present and future value.

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 Table of Contents
Abstract........................................................................................................................ 2

Chapter 1: Introduction...................................................................................................... 4

1.1 Introduction............................................................................................................ 4

1.2 Problem of statement................................................................................................ 5

1.3 Objective of study.................................................................................................... 5

Chapter 2: Literature Review.............................................................................................. 6

2.1 Literature review..................................................................................................... 6

2.1.1 Accounting Methods........................................................................................... 6

2.1.2 Investment strategies........................................................................................... 7

Chapter 3: Research Methodology........................................................................................ 9

3.1 Research Methodology.............................................................................................. 9

3.2 Research Design...................................................................................................... 9

3.3 Data collection sources.............................................................................................. 9

3.4 Data analysis.......................................................................................................... 9

Chapter 4: Data Analysis.................................................................................................. 10

4.1 Demographic description......................................................................................... 10

4.2 Research Data Analysis........................................................................................... 12

Chapter 5: Conclusion..................................................................................................... 22

5.1 Conclusion........................................................................................................... 22

Bibliography................................................................................................................ 23

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 Chapter 1: Introduction

1.1 Introduction
The accounting for investments takes place when funds are paid for an investment instrument.
The accurate kind of accounting counts on the proportional size of the investment and the
intention of the investor. The significance of accounting is immense vital for decision making
and building of long term strategies. The accounting strategies such as evaluation process help
the management to understand the various kinds of market securities and its impact on wealth /
earning. The highest return or high rate of return shall be appropriate for better investment, in
this regards different accounting treatment the organization or individual have been used during
the course of investment decision making strategies.

If an investment is obtained, or partly obtained, by the distribution of shares or other securities,

the cost of acquisition must be the fair value of the securities distributed (which in suitable cases
might be suggested by the issue value as decided by legal authorities). The fair value might not
essentially be equal to the par or nominal value of the securities issued. In exchange for another
asset, if an investment is obtained, the cost of acquisition of the investment must be decided by
reference to the assets fair value given up. On the other hand, the cost of acquisition of the
investment might be decided with regards to the fair value of the investment obtained if it is
more visibly evident (Larson, 2008).

Current investments valuation on global (or overall) basis is not thought suitable. At times, the
concern of an enterprise might be with the value of a group of associated current investments and
not with every single investment, and for that reason the investments might be carried at the fair
value computed category wise and the lower of cost (i.e. preference shares, convertible
debentures, equity shares, etc.). But, the more appropriate and prudent method is to individually
carry investments at the fair value and lower of cost (Dik, 2011).

Usually the long-term investments are carried at cost. But, when there is a fall, other than
interim, in the long term investment value, the carrying amount is decreased to identify the fall.
Pointers of the investment value are acquired by market value reference, the assets of investees
and outcome and the estimated cash flows from the investment. The kind and amount of the

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investors share in the investee are even taken into consideration. Constraints on allocations by
the investee or on discarding by the investor might influence the value accredited to the
investment (Lenguer, Mayr and Parasote, 2006).

1.2 Problem of statement

The main problem statement of the accounting for investment is how to critically understand the
various kinds of investment decision making and strategies for long term satisfaction. And which
kind of role that accounting data have linked with investment decision making.

1.3 Objective of study

The main purpose of the this assignment is to understand the various tools for making an
investment and the role of the accounting for evaluation in order to achieve the level of
satisfaction as per requirement. There are following objectives of the study are

To understand the significance of accounting for investment.

To understand the role of accounting for investment.

To understand the various strategies and decision making of accounting for investment.

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 Chapter 2: Literature Review

2.1 Literature review

The accounting role and investment decision making strategies

An investment in financial assets is usually classified as having rights of less than 20 percent in
an investee. Such a condition would be thought a "passive" investment as in most situations an
investor would not have major control or impact over an investee. During acquisition, the assets
(investment in investee) are reported on the balance sheet of investing company (investor) at fair
value. As time passes by and the fair value of the assets alters, the accounting handling will be
reliant upon the categorization of the assets. The accounting for investments takes place when
funds are paid for an investment instrument. The accurate kind of accounting counts on the
proportional size of the investment and the intention of the investor. The following kinds of
accounting might use depending on these factors:

2.1.1 Accounting Methods

Net Present Value

The most commonly used accounting methods for project investment evaluation is NPV which
provides the calculation of present value of cash inflow from the given outflow during the capital
budgeting strategic decision making process (Zhang, 2008).

Internal Rate of Return

It also provides the data and information in percentage term for project evaluation process
regarding their profitability and non-profitability (Kopp, 2009).

Discounted Payback Period

It is define the time period in which the project cost will be covered for strategic decision making
of investment (Kopp, 2009).

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2.1.2 Investment strategies
Held to maturity investment

If, till its date of maturity the investor aims to keep an investment (that efficiently controls this
accounting system to debt instruments) and has the capacity for doing so, the investment is
categorized as owned till maturity. Initially this investment is recorded at price, with paying back
adjustments afterward to reveal any discount or premium at which it was obtained. The
investment might even be recorded to reflect any unending impairment. For this kind of
investment there is no continuing adjustment to market value. As they have no date of maturity
this system cannot be used to equity instruments. Planned to be held till maturity, these are debt
securities. On the balance sheet long-term securities will be reported at pay back cost, with
interest profits being reported on the income statement of the investee (Linstrom, 2005).

Held-for-Trading

In the short-term if the investor plans to sell its investment for a profit, the investment is
categorized as a security trading. Initially this investment is written down at cost. Towards the
end of every successive accounting stage, alter the written down investment to its fair value
towards of the end of the period. Any unrealized having losses and gains are to be written down
in operating profits. This investment could be either a equity or debt instrument (Byrne, 2014).

Debt and equity securities held with the goal to be sold for a profit (hopefully) within a short
span-horizon, usually 3 months. On the balance sheet they are reported at fair value, with any
changes in fair value (unrealized and realized) being reported on the income statement, together
with any dividend or interest earnings (Short and Upenn, 2012).

Available-for-Sale

This investment cannot be classified as trading security or owned till maturity. Initially this
investment is written down at cost. Towards the ending of every successive accounting stage,
alter the written down investment to its fair value as of the ending of the period. In other wide-
ranging income any unrealized holding losses and gains are to be written down till the time they
have been sold (Laux, 2008).

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These are neither held-for-trading nor held-to-maturity. Held-for-trading securities are similar to
available-for-sale securities, but simply realized changes in fair value are reported on the
statement of income (together with interest and dividend income), with all unrealized changes on
the balance sheet being reported as a part of shareholders' equity (Guo and Matovu, 2009).

Equity evaluation Method

If over the investee the investor has considerable operating or monetary control (usually believed
to be no less than a 20 percent profit), the equity approach must be employed. Initially this
investment is written down at cost. In following periods, the investor identifies its stake of the
losses and profits of the investee, following intra-entity losses and profits have been removed. In
addition, if to the investor the investee distributes dividends, the dividends are removed from the
investment of the investor in the investee (Schreiner, 2007).

A vital perception in the bookkeeping for investments is whether a loss or gain has been realized.
As it is a realized loss, a realized gain is attained by the selling of an investment. On the other
hand, an unrealized loss or gain is linked with an alteration in the investments fair value which
is still held by the investor. There are various situations than the out-and-out selling of an
investment which is believed realized losses. When this takes place, a realized loss is identified
in the statement of income and the carrying sum of the investment is recorded by an equivalent
amount. For instance, on an owned security when there is a permanent loss, the whole figure of
the loss is thought as realized loss, and is irrecoverable. In general a permanent loss is linked to
an investees liquidity or bankruptcy troubles. An unrealized loss or gain is not dependent on
direct taxation. This loss or gain is just identified for tax reasons when it is achieved by the
selling of the underlying precautions. This indicates that there might be a distinction among the
toll source of securities and their carrying figure in the bookkeeping documents of the investor
that is believed a transient difference (Nassaka and Rottenburg, 2011).

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 Chapter 3: Research Methodology

3.1 Research Methodology

In this chapter the research methodology of the subject topic of accounting for investment will be
discussed. The research methodology is providing the vital information about the data and
information gathered. The research methodology is important for understanding of different data
collection strategies and approaches to demonstrate the results as per requirement. Usually there
are two types of research methodology have been used for research analysis are primary data
collection and secondary data collection methods.

3.2 Research Design

The research design means to provide the data and information about analysis of information
through various kinds of strategies such as quantitative or qualitative research methodology. This
assignment is comprised on quantitative data analysis. The 5-likert scale questionnaire has used
for collection of required data and information of accounting for investment.

3.3 Data collection sources

The data was collected through primary and secondary sources. The primary data was collected
from concerned respondents of accounting firms / organization and investment companies. The
secondary data is also collected from reliable sources such as journal articles, books, trustworthy
website and etc.

3.4 Data analysis

After the collection of data from concerned respondents the data was analyzed through SPSS
software. The said software is comprised on statistical applications that convert the data into
useful information as per needed results.

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 Chapter 4: Data Analysis
This chapter includes the data analysis of accounting for investment. The research analysis has
comprised on quantitative data analysis. The data was collected through 5-likert questionnaire
scale. The data was collected from concerned respondents such as investment agencies, brokers,
corporate, financing banking sectors and other relevant individuals.

4.1 Demographic description

There are following statistics of respondents regarding collection of data. There were total 25
respondents in which male are (17) and female (8) as per table 1.
Table 1: Gender wise statistics

Gender wise frequency

Frequency Percent Cumulative Percent

17 68 68
Male
8 22 100.0
Female
100.0
Total

Frequency Chart

Female; 32%

Male; 68%

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In the following table 2, age frequency statistics of respondents have been presented in which
that least and highest frequency are as mentioned below
Table 2: Age of responder statistics

Age Frequency Percentage

26 to 30 1 4%

31 to 35 6 24%

36 to 40 11 44%

41 to 45 5 20%

46 to 50 2 8%

Total 25

Respondent Age Statistics

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4.2 Research Data Analysis
The 5-likert questionnaire having 8 questions was designed and the required data and
information were collected from the concerned respondents. The data was collected on subject
topic of accounting for investment having.

The following table no. 03, is includes the descriptive statistics of the questionnaire that provides
the information about the no of respondents, minimum, maximum, mean / average and standard
deviation according to question are mentioned below

Table 3: Descriptive Statistics

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 Descriptive Statistics

Std.
N Minimum Maximum Mean Deviation
The accounting strategies are 25 2.00 5.00 3.9600 .73485
important for investment.
At each level of investment strategies 25 2.00 5.00 3.8400 .74610
different types of accounting treatment
has been used such as NPV, IRR, DBP
etc.
It important to have proper knowledge 25 1.00 5.00 3.6000 1.15470
of accounting methods of the required
investment.
Accounting methods are take place 25 1.00 5.00 3.7200 .97980
when individual or organization wants
to make investment decision making.
The cost of acquisition / lower the cost 25 1.00 5.00 3.7600 1.12842
and fair valuation methods have
strategic accounting valuation for
investors.
Held-to-maturity, available for sale, 25 2.00 5.00 3.8400 .80000
held for trading and equity valuation
all have different methods of
calculation and must be evaluated
according to the nature of current
scenario and client tolerance.
Accounting for investment is not just 25 1.00 5.00 3.4400 1.22746
includes the strategy to evaluate the
investment. It is also helpful for
adjusting losses and profit with
different accounting methods.
NPV, IRR and Discounted Payback 25 2.00 5.00 3.9200 .75939
period are the most common
accounting methods that are used for
investment strategies. 13
Table 4: Frequency distribution of first question

The frequency distribution of first question indicates that most of the respondents were agreed
about the importance and significance of accounting strategies. They indicate that accounting
should be implementing as it is vital for proper long term strategic decision making.

The accounting strategies are important for investment.

Cumulative
Frequency Percent Valid Percent Percent
Valid D 1 4.0 4.0 4.0
N 4 16.0 16.0 20.0
A 15 60.0 60.0 80.0
SA 5 20.0 20.0 100.0
Total 25 100.0 100.0

Table 5: Frequency distribution of second question

The frequency distribution of second question indicates that most of the respondents were agreed
with this current statement. They indicate that investment strategies are used at each level of
activities for evaluation of project cost and profit through NPV, IRR, DBP and other.

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 At each level of investment strategies different types of
accounting treatment has been used such as NPV, IRR, DBP
etc.
Cumulative
Frequency Percent Valid Percent Percent
Valid D 2 8.0 8.0 8.0
N 3 12.0 12.0 20.0
A 17 68.0 68.0 88.0
SA 3 12.0 12.0 100.0
Total 25 100.0 100.0

Table 6: Frequency distribution of third question

The frequency distribution of third question indicates that most of the respondents were agreed
with this current statement. They indicate that proper knowledge should be in place in order to
properly use the accounting methods for investment evaluation.

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 It is important to have proper knowledge of accounting
methods of the required investment.
Cumulative
Frequency Percent Valid Percent Percent
Valid SD 2 8.0 8.0 8.0
D 3 12.0 12.0 20.0
N 2 8.0 8.0 28.0
A 14 56.0 56.0 84.0
SA 4 16.0 16.0 100.0
Total 25 100.0 100.0

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Table 7: Frequency distribution of fourth question

The frequency distribution of fourth question indicates that most of the respondents were agreed
with this current statement. They indicate that accounting methods would be used by individual
or corporate / organization for making investment decisions.

Accounting methods are take place when individual or

organization wants to make investment decision making.
Cumulative
Frequency Percent Valid Percent Percent
Valid SD 1 4.0 4.0 4.0
D 3 12.0 12.0 16.0
N 1 4.0 4.0 20.0
A 17 68.0 68.0 88.0
SA 3 12.0 12.0 100.0
Total 25 100.0 100.0

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Table 8: Frequency distribution of fifth question

The frequency distribution of fifth question indicates that most of the respondents were agreed
with this current statement. They indicate that cost of acquisition / lower the cost and other fair
valuation methods are strategic decision making of short and long term investment.

The cost of acquisition / lower the cost and fair valuation

methods have strategic accounting valuation for investors.
Cumulative
Frequency Percent Valid Percent Percent
Valid SD 2 8.0 8.0 8.0
D 2 8.0 8.0 16.0
N 1 4.0 4.0 20.0
A 15 60.0 60.0 80.0
SA 5 20.0 20.0 100.0
Total 25 100.0 100.0

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Table 9: Frequency distribution of sixth question

The frequency distribution of sixth question indicates that most of the respondents were agreed
with this current statement. They indicate that different evaluation methods such as Held-to-
maturity, available for sale, held for trading and equity valuation have different and should be
evaluated on the basis of client tolerance behavior and current situation.

Held-to-maturity, available for sale, held for trading and

equity valuation all have different methods of calculation and
must be evaluated according to the nature of current scenario
and client tolerance.
Cumulative
Frequency Percent Valid Percent Percent
Valid D 2 8.0 8.0 8.0
N 4 16.0 16.0 24.0
A 15 60.0 60.0 84.0
SA 4 16.0 16.0 100.0
Total 25 100.0 100.0

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Table 10: Frequency distribution of seventh question

The frequency distribution of seventh question indicates that most of the respondents were
agreed with this current statement. They indicate that accounting methods would be used and
helpful for adjusting profit and loss of investment accordingly.

Accounting for investment is not just includes the strategy to

evaluate the investment. It is also helpful for adjusting losses
and profit with different accounting methods.
Cumulative
Frequency Percent Valid Percent Percent
Valid SD 3 12.0 12.0 12.0
D 3 12.0 12.0 24.0
N 2 8.0 8.0 32.0
A 14 56.0 56.0 88.0
SA 3 12.0 12.0 100.0
Total 25 100.0 100.0

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Table 11: Frequency distribution of eighth question

The frequency distribution of eighth question indicates that most of the respondents were agreed
with this current statement. They indicate that accounting such as NPV, IRR and discounting
payback period are the most famous strategies for investment.

NPV, IRR and Discounted Payback period are the most

common accounting methods that are used for investment
strategies.
Cumulative
Frequency Percent Valid Percent Percent
Valid D 2 8.0 8.0 8.0
N 2 8.0 8.0 16.0
A 17 68.0 68.0 84.0
SA 4 16.0 16.0 100.0
Total 25 100.0 100.0

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22
Theoretical frame

The theoretical structure gives the importance of a word regarding the hypotheses on monetary

explanation, for example, exclusive, lingering value theory, element theory and the current

portfolio theory. It expect both learning and acknowledgment of the hypotheses that this

exploration work relies on.

Proprietary and residual equity theory

Restrictive value scholars, for example, Husband (1938), demanded that the bookkeeping

procedure of organizations must be led from the shareholders' viewpoint. Staubus (1952, 1959),

built up the remaining value theory which considered that the bookkeeping must be done from

the viewpoint of the leftover value holders, which for a running concern harmonizes with that of

the basic shareholders. Leftover value theory is regularly viewed as a more prohibitive type of

restrictive theory. Under the exclusive view, exchanges and occasions are investigated, recorded

and represented as to their prompt impact on the proprietors. Money related articulations are set

up from the perspective of the proprietors and are intended to gauge and investigations their total

assets communicated by the bookkeeping condition:

(1) assets - liabilities = equity, proprietorship or total assets

In the exclusive view, the advantages are viewed as the proprietors' benefits, and the liabilities

are the proprietors' liabilities. As indicated by Newlove and Garner (1951) under restrictive

theory "liabilities are negative resources negative properties, which must be pointedly

characterized and isolated in the bookkeeping procedure." Revenues are increments in

proprietorship and costs are declines. Net benefits, "the abundance of incomes over costs, gathers

specifically to the proprietors; it speaks to an expansion in the abundance of the proprietors."

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(Hendriksen and Van Breda, 1992) Staubus (1959) limited the idea of proprietors to normal

stockholders and considered inclination shareholders as obligation holders and focused on the

significance to financial specialists of the estimation of future money receipts. The bookkeeping

condition moves toward becoming:

(2) Assets Specific Equities (=Liabilities + Preferred Stock) = Residual Equity

The restrictive approach speaks to an office perspective of the organization where the principle

duty of administration is to deal with the firm to the greatest advantage of the proprietors. As the

advantages and liabilities are viewed as the proprietors' benefits and liabilities, the boost of

benefits equivalents amplification of the expansion in the shareholders' net resources. Therefore,

the benefit/obligation way to deal with salary assurance, where pay is the by-result of the

valuation of advantages and liabilities, is the most direct method for measuring the expansion in

net resources. Under both the exclusive theory and the benefit/risk way to deal with wage

assurance, it is basic that shareholders' advantages are strongly recognized from the interests of

the suppliers of obligation capital so as to have the capacity to gauge the expansion in net

resources.

Entity theory and enterprise or social theory

Under the element see, exchanges are examined as to their impact on the bookkeeping substance.

Money related articulations are set up from the perspective of the substance. The salary

proclamation is intended to figure wage for dispersion and break down the organization's

execution over a period, though the accounting report serves to show the security or peril of the

organization's money related position.

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In the element see as communicated in condition 3, the advantages are viewed as the

organization's benefits, and the liabilities are the organization's liabilities. Then again, as

communicated in condition 4, the benefits are viewed as the organization's advantages and the

values are all the monetary partners' values. Element theory sees the element as "having a

different presence an a safe distance association with its proprietors. The connection to the

proprietors is viewed as not especially not quite the same as that to the long haul banks." (Lorig,

1964). Suojanen (1954's) undertaking or social theory sees the huge recorded partnership as an

establishment with social duties. Organizations' activities influence a wide range of partners, for

example, stockholders, lenders, clients, workers, the administration as a burdening and

administrative expert and the general population on the loose. Suojanen follows this regulation of

the huge endeavor to the detachment of administration and possession prompting progressively

substantial extents of wage being held inside the organization to decrease the partnership's

reliance on outside financing. Expansive partnerships may choose to pay just 'expectedly

satisfactory profits' since this ties in with their survival and development targets. (Suojanen,

1958).

The Modern Portfolio Theory (MPT)

Harry Markowitz (1991), an American financial expert in the 1950s built up a theory of

"portfolio decision," which enables investors to break down hazard in respect to their normal

benefit. For this work Markowitz, a teacher at Baruch College at the City University of New

York, shared the 1990 Nobel Memorial Prize in Economic Sciences with William Sharpe and

Merton Miller. Markowitz's theory is today known as the Modern Portfolio Theory, (MPT). The

MPT is a theory of venture which endeavors to boost portfolio expected benefit for a given

measure of portfolio hazard, or comparably limit chance for a given level of expected benefit, via

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precisely picking the extents of different resources. In spite of the fact that the MPT is broadly

utilized as a part of practice in the money related industry, as of late, the fundamental suspicions

of the MPT have been generally tested.

The Modern Portfolio Theory, a change upon customary venture models, is an essential progress

in the numerical displaying of fund. The theory urges resource enhancement to fence against

market chance and in addition hazard that is remarkable to a particular organization. The theory

(MPT) is a refined investment choice approach that guides a investor to group, gauge, and

control both the kind and the measure of expected hazard and benefit; likewise called Portfolio

Management Theory. Basic to the portfolio theory are its evaluation of the connection amongst

hazard and benefit and the suspicion that financial specialists must be made up for accepting

danger. Portfolio theory leaves from conventional security investigation in moving accentuation

from breaking down the attributes of individual ventures to deciding the factual connections

among the individual securities that contain the general portfolio (Edwin and Martins 1997). The

principal idea driving the MPT is that advantages in a venture portfolio ought not to be chosen

independently, each all alone merits. Or maybe, it is critical to consider the benefit of the

organization.

Conceptual framework:

The premise of budgetary arranging investigation and basic leadership is the money related data.

Money related data is expected to foresee, think about and assess an association's procuring

capacity. It is likewise required to help in monetary basic leadership investment and financing

basic leadership. The monetary data of an endeavor is contained in the money related

explanations. Monetary proclamations as indicated by Gavtan (2005) is characterized as

budgetary data which is the data identifying with money related position of any firm in a

26
container shape. Monetary articulation as per Ohison (1999) was characterized as a composed

report that compresses the money related status of an association for an expressed timeframe. It

incorporates a pay explanation and accounting report or articulation of the money related

position portraying the stream of assets, benefit and misfortune and the dispersion or

maintenance of benefit. Monetary explanation as per Academic of association Dictionary is an

archive which sets out the advantages, wage, costs and obligations of an organization to enable a

third individual to survey that organization's wellbeing.

The venture choices of a firm are by and large known as the capital planning choice might be

characterized as the company's choice to put its present subsidizes most proficiently in the long

haul resources in foreseen of a normal stream of advantages over a progression of years. As per

Canada and White (4) is the arrangement of choices by individual monetary units with reference

to how much and where assets will be gotten and expected for future. Circumstance where

capital use choices are made or taken, they are based essential with estimation of capital

efficiency which gives a target methods for measuring the financial worth of individual

investment recommendations so as to have a sensible reason for picking among the Firm's for

quite some time run property. (Pandey 2005). The long haul resource is those which influence the

organizations operation past the year time frame. The association's venture choice would by and

large incorporate development procurement, modernization and substitutions of the long haul

resources. Offers of division or business divestment are likewise broke down as a investment

choice. Exercises, for example, change in the strategies for deals dissemination or undertaking an

ad battle or an innovative work programs have long haul suggestions for the organizations

consumptions and benefits, and in this way, they may likewise be assessed as investment

choices.

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Future advantages of venture are hard to gauge and can't be anticipated with sureness. Chance in

venture emerges as a result of the questionable returns. Investment recommendations ought to in

this way, be assessed as far as expected return and hazard. Adjacent to the choice to submit

finances in new investment proposition, capital planning additionally includes substitution

choices that are choice of recommitting assets when a benefit turns out to be less beneficial or

non-productive. The right cut-off rate in ventures is the open door cost of capital which is the

normal rate of give back that an investor could acquire by putting resources into budgetary

resources of proportional hazard. It is huge to underline that consumptions and benefits or a

venture ought to be measured in real money. In a venture examination, it is income which is

critical, not the bookkeeping benefit. It might likewise be brought up that venture choices

influence the association's esteem. The association's esteem will increment if ventures are

productive and add to the shareholder's riches. These increments are reflected in the money

related explanation of the firm, which perpetually are utilized as instrument for venture choices

inferable from certain examination characteristic in them.

Chapter 5: Conclusion
5.1 Conclusion
The accounting for investment results indicates that it is very important to have proper
knowledge for implementation of strategic decision making. The accounting methods such as
NPV, IRR, DPB and other have significant impact on project evaluation and should be evaluated
on the basis of client risk tolerance as well as current scenarios. The lower the cost, fair value
and cost of equity should be appropriately used for trading, available for sales securities and
equity based project. In all types of short and long term projects the accounting system have
immensely important value because it significantly calculate the value of the project on the basis
of rate of return or future outcome on the basis of present value.

28
29
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