Mutual fund investment on the balance sheet: book value or market value?

Question

2363 viewsMarch 18, 2019Accounting

0

Norm (anonymous) Posted March 14, 2019

Hi Allan. Great site and videos!

A simple accounting question but has been resistant to my searches…should the balance sheet of a CCPC represent its passive mutual fund investments by book value or market value? And at which date? (end of fiscal year or as of preparing the financial statements).

Thanks!

1 Answer

score 0 · Answer 1 · 2019-03-18T16:31:14+00:00

For tax purposes, the balance sheet should reflect the book value as of the date the investments were purchased. Purchases and sales made in the tax year will affect the book value.

Mutual fund investment on the balance sheet: book value or market value?

1 Answer

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