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Land for sale in normal course of business rented for short term

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Land for sale in normal course of business rented for short term

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • December 19, 2020 at 3:29 pm #600328
    chathurangaw
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Due to the COVID19 pandemic it is difficult to find buyers for a land acquired with an intention to sell in the normal course of business. Therefore the management has rented out the land as a car park for a short period of time till the land is sold.

    Do we need to transfer the land from inventory to investment property?

    December 22, 2020 at 8:52 pm #600605
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7212
    • ☆☆☆☆☆

    Hi,

    If it is a change in use of the asset then you would look to change the accounting treatment.

    Thanks

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