• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Q Canto IAS 16 to IAS 40

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Q Canto IAS 16 to IAS 40

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by Stephen Widberg.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 15, 2021 at 10:01 pm #620693
    jareerabedin
    Member
    • Topics: 91
    • Replies: 72
    • ☆☆

    Dear sir,
    Isn’t the main reason for classifying an asset under IAS 40, is that the asset should be held for rental payments or for Capital appreciation.

    However, in this question, they don’t mention that. Can you help me understand this? Whenever, there is a change in the application from IAS 16 to IAS 40, shouldn’t I mention the above requirement?

    I’m trying to understand how a change in use from an office building to an industrial unit justifies classifying from PPE to Investment property. I thought industrial units are where good are made, so how are they being held for capital appreciation or rental income?

    Thanks

    May 16, 2021 at 9:46 am #620730
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3396
    • ☆☆☆☆☆

    Your logic sounds fine.

    If they a business occupies property – PPE

    If you don’t and you rent the property out – IP

    Exam question normally makes this clear.

    I don’t recognise the name Canto as a current syllabus question- tell me if I’m wrong.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • azubair on Time Series Analysis – ACCA Management Accounting (MA)
  • Gowri7 on Relevant cash flows for DCF Working capital (examples 2 and 3) – ACCA Financial Management (FM)
  • Govere on The use of ratios and comparisons in auditing
  • John Moffat on Relevant cash flows for DCF Working capital (examples 2 and 3) – ACCA Financial Management (FM)
  • Gowri7 on Relevant cash flows for DCF Working capital (examples 2 and 3) – ACCA Financial Management (FM)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in