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IAS 40

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS 40

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by P2-D2.
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  • December 17, 2017 at 7:01 pm #423851
    pirates
    Member
    • Topics: 34
    • Replies: 24
    • ☆☆

    dear sire ,

    Q: if in groups account there is an lease by parent(of LAND AND BUILDING ) to subsidiary and parent would have treated it as IAS 40 in individual F.S we would re recognise it as IAS 16 by capitalising the land and building and taking any gain on revaluation under fair value to other comprehensive income?

    December 21, 2017 at 8:40 am #424259
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7163
    • ☆☆☆☆☆

    Hi,

    Correct, because in the group accounts it is not held for investment purposes but is being used in running the business.

    Thanks

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