Investment property vs work in progress

This topic has 1 reply, 2 voices, and was last updated 8 years ago by P2-D2.

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November 8, 2017 at 3:59 pm #414879
nari
Member
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Hello 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 12, 2017 at 9:51 am #415346
P2-D2
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Hi,

If the future intent is that it is to be used as IP then we leave it in IP. We still follow the same rules with regards to the capitalisation of costs that we see in IAS 16 though.

Thanks
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