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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Leases
Hello
1. In a situation where an entity’s normal course of operations is to sell investment properties, should those properties be classes under IAS 2 or 40?
2. Also, if the property is being held by the entity under a finance lease, but the entity intends to hold it for capital gain, how is that accounted for?
Hi,
If we are selling anything in our normal course of business then it is IAS 2.
If we have a property under a finance lease then it will not be being held for investment purposes or any capital appreciation. It is not an IP. It is capitalised and depreciated.
Thanks
