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Please assist. I can not get this part of the standard.
A property interest that is held by a lessee under an operating lease may be classified and accounted for as an investment property, if and only if the property otherwise meet the definition of an investment property and the lessee uses IAS 40 fail value model. A property interest held under a lease and classified as an investment property shall be accounted as if it were a finance lease.
I could not understand the interrelation of finance lease, operating lease and investment property. It seems very mixed for me.
Can you, please, explain this description in more available form?
Thank you!Even though it may appear to be an operating lease, if the lessee has sublet it and is holding it for the long term, then it should be treated as a finance lease
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