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Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › SBR:Relationship between Finance lease and investment property?
Hi there,
If we finance lease a property to some company, could it be an investment property too? In which case, that is applicable ?
Thank you so much in advance!
Hi Mahboba. Under IFRS 16, If we have leased out the property under finance lease, we have transferred the risks and rewards to the lessee. This means the lessee has the ‘right of use of the assets’.
Thus, we actually derecognise our asset which initially sits at either IP or PPE.
Hope this helps.