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When is a property a “Non-current asset held for resale” and when is it classed as “investment property” (talking when it it is not leased/rented out, but held it hopes of appreciation?) Thank you
Hi,
IAS 40 applies to land/buildings that are held to earn rentals or held with a view to selling once they’ve appreciated in value.
IFRS 5 applies to PPE that was previously used in the daily running of the business but is now no longer required and is to be sold, so is now no longer classified as PPE but as a NCA-HFS.
Hope that clears it up a bit.
Thanks
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