Should fixed asset investments (unlisted shares) be depreciated and on what basis if their valuation is unknown ?
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I wouldn't regard a share as a fixed asset.
I believe it's just an investment, and you can choose to measure it at either cost or fair value.
I'm no expert in such things though.
Depreciation only applies to TANGIBLE fixed assets (other than freehold land of course). So it does not apply to shares.
The role of fixed assets is to enable or enhance the production or supply of trading operations. The shares you mention are not connected with those: They are simply investments.
There are many types of investment that qualify as fixed assets. Leaving aside the obvious ones that presumably don't apply here (such as investments in a subsidiary or participating interest), common examples are shares held in a buying group of which the company is a member or shares held in another company in order to gain a say, albeit a minority one, in the running of that other company, which might even be a competitor.
In all cases, though, the basic rule is that such investments should be stated at cost less impairment, not at fair value. You have to apply the normal impairment test: lesser of value in use and realisable value. In most cases, one would conclude that, without evidence to the contrary, cost should be the measurement for accounts purposes.