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Employees in apt

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Employees in apt

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by MikeLittle.
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  • November 2, 2013 at 7:11 pm #144399
    hasanali95
    Member
    • Topics: 239
    • Replies: 248
    • ☆☆☆

    P leases apartments to famous persons who r under a contract of employment to promote P’s fashion clothing.The apartments are let to them at below market rate,how do we treat this in Ps Financial statements?
    Thanks

    November 3, 2013 at 8:59 am #144417
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23349
    • ☆☆☆☆☆

    As though they were at an arm’s length rental – so gross up the rental income and show the newly introduced expense as a marketing cost

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