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Investment property vs capital work in progress

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Investment property vs capital work in progress

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by MikeLittle.
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  • November 8, 2017 at 4:04 pm #414880
    nari
    Member
    • Topics: 261
    • Replies: 176
    • ☆☆☆

    Hello Mike

    I am aware that investment property is property held for rental or capital appreciation.

    If for example, a company purchases land and then after a year it starts to develop that same land to sell, should the land be classed as investment property for the first year only and then work in progress for the following years?

    November 8, 2017 at 7:05 pm #414904
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23333
    • ☆☆☆☆☆

    As at the date of change the value of the land should be moved out of investment property and into work-in-progress, yes

    Your post suggestions were correct

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  • The topic ‘Investment property vs capital work in progress’ is closed to new replies.

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