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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS 40
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?
Hi,
Correct, because in the group accounts it is not held for investment purposes but is being used in running the business.
Thanks
