## AS 13 — Accounting for Investments: Introduction
### What is an Investment?
An investment is an asset held by an enterprise to earn returns through any of the following:
| Return Type | Examples |
|---|---|
| Interest Income | Fixed deposits, debentures, bonds |
| Dividend Income | Equity shares, preference shares |
| Rental Income | Property |
| Capital Appreciation | Land, property, gold, silver, shares, debentures, bonds |
### Scope — What AS 13 Does NOT Cover
AS 13 governs how investments are classified, valued, and disclosed. It does not deal with:
| Exclusion | Governed By |
|---|---|
| Recognition of interest / dividends / rentals earned on investments | AS 9 (Revenue Recognition) |
| Finance leases | AS 19 |
| Operating leases | AS 19 |
| Investments held under retirement benefit plans | AS 15 |
| Investments by life insurance companies | Not covered |
| Investments by mutual funds, venture capital funds, AMCs, banks, financial institutions | Not covered |
> Key distinction: AS 13 answers "how do I record and value an investment in the books?"
> AS 9 answers "when do I recognise the income that investment earns?"