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Buildings leased out under Operating Lease

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Buildings leased out under Operating Lease

  • This topic has 2 replies, 2 voices, and was last updated 5 years ago by Stephen Widberg.
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  • June 29, 2020 at 2:54 am #574900
    ashray99
    Participant
    • Topics: 1
    • Replies: 1
    • ☆

    Should buildings leased out under Operating Lease be accounted under IAS 40 Investment Property or under IFRS 16 Leases?

    June 29, 2020 at 3:02 am #574901
    ashray99
    Participant
    • Topics: 1
    • Replies: 1
    • ☆

    As per the latest Kaplan Study Material Buildings leases out under an operating lease has been cited as an example under IAS 40 Investment Property.
    But technically, shouldn’t it be accounted under IFRS 16 Leases?

    June 29, 2020 at 12:03 pm #575084
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3441
    • ☆☆☆☆☆

    Standard numbers are not relevant in the exam

    Buildings leased out under OL are definitely IP; just as a car leased out under OL would be PPE

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