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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Carrying value of investment property
Hello,
From the perspective of a lessor of an investment property:
1. Do lease incentives (eg fitout contributions) directly increase the carrying value of the investment property? That is, is the accounting entry
Dr investment property
Cr Payable
And as the lease incentive gets amortised over the life of the lease, does the carrying value of the investment property decrease in line with this?
2. Does capex spend directly increased the value of the investment property?
Thank you.
IAS 40 covers accounting for investment property but this is not examinable in Paper FA.
It is examinable in Paper FR and the details are covered in our free Paper FR lectures.