• A long-term investment is an investment other than a current investment.
• Long term investments are usually carried at cost.
• If there is a decline, other than temporary, in the value of a long term investment; the carrying amount is reduced to recognise the decline.
• The reduction in carrying amount is charged to the statement of profit and loss.
• The reduction in carrying amount is reversed when there is a rise in the value of the investment, or if the reasons for the reduction no longer exist.
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