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there is a sentence : A building held by the entity under finance lease is an investment property.
this sentence means that an entity gets a buildings under finance lease from another one or this entity gives this building to another entity under finance lease?
It could be either of those interpretations
But lessor accounting is not within the F7 syllabus so it’s more likely talking about a lessee that acquires a building under a finance lease
Having said that, a finance lease on a building is not likely an investment property in the lessee’s intentions
You’ll need to give me substantially more context for me to be definitive!
it is said that Examples of investment property include:
a)A building owned by the reporting entity (or held by the entity under a finance lease) and leased out under an operating leasea building held b the entity under finance lease should not be recognised under non current asset in the SOFP? why it is said above that that building is investment property?
“a building held b the entity under finance lease should not be recognised under non current asset in the SOFP? why it is said above that that building is investment property?” – this quotation is either incorrect or it has been taken out of context!
“a)A building owned by the reporting entity (or held by the entity under a finance lease) and leased out under an operating lease” – these are examples of an investment property. A building that is owned (or held under a finance lease) and re-leased under an operating lease MAY be classified as an investment property
Your original post … “there is a sentence : A building held by the entity under finance lease is an investment property” is incorrect and has successfully unnecessarily wasted my time!
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