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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › july remote exam
Property B was used for administrative purposes and was also rented to
the company’s staff. Candidates found the classification of this property quite a difficult exercise.
As a proportion of the property was deemed to be owner occupied, it would be classified as
property, plant and equipment. The other part let to company staff would be classified as
investment property.
This is what i read in the July remote exam examiners report. I thought letting out to company staff would be owner occupied? How can you let the property out to company staff if they are working for you?
If let out at market price – could be investment property.
If let out at a big discount – more likely to be PPE.
(In future please be clearer in your thread ‘naming’ – e.g. Investment property let out to staff)