Investment properties (IAS 40) – ACCA (SBR) lectures
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When a property under development, which is inventory, transfers into IP, the fair value is higher than the cost. what should the gains recognize?profit or OCI?
thanks.
If a building is partly owner occupied and partly rented can the rental portion be classified as investment property.
In the example what happens then to the revaluation surplus of 1.5m?
it goes to OCI (SPLOCI)
This $1,5m will stay in OCI until the building will dispose/sold?
example 7: Investment property and change of use
in the example worked why is it that on 1st JUly, 2015 the property is treated under IAS 16 whilst the question state that on 1.07.2015 it was decided to lease the property?
thanks and Regards
AM,
If lessor gives property on operating lease to the lessee, then in the books of a lessor this property will be treated under IAS 16 or IAS 40 ? Please clarify
Thanks
obviously IAS 40 dear as he is renting his property
Hello
In chapter investment property example7, IP and change of use.
Does the depreciation charge $0.5m will be charged in P/L even if it has change of use?
thx in advance.
Hi,
Yes it is as for the first six months of the year the building was held as PPE and would have been accounted for under IAS 16.
Once it is held as IP then it is no longer depreciated.
Thanks
A company’s revenue is gaining revenue mainly on operating lease. If it is using fair value model to measure subsequently, it donsnt have to depreciate the buildings, but still earning rental income. What is its cost of sales?