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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Land for sale in normal course of business rented for short term
Due to the COVID19 pandemic it is difficult to find buyers for a land acquired with an intention to sell in the normal course of business. Therefore the management has rented out the land as a car park for a short period of time till the land is sold.
Do we need to transfer the land from inventory to investment property?
Hi,
If it is a change in use of the asset then you would look to change the accounting treatment.
Thanks