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Dear Chris,
How are you?
I hope you are safe and well,
Could you tell me what is the difference between the asset held for sale IAS 5 and investment property IAS 40 as concept and accounts treatment in case of IP has been bought / constructed for speculative purposes.Thank you in advance.
Hi,
I’m well thanks and the sun has finally made an appearance here in the UK, which always helps.
The two standards you mention are totally distinct. IFRS 5 isused when we have a non-current asset that is to be held for sale prior to being disposed. IAS 40 looks at property we have purchased with some excess funds we have in the business and are ether going to earn rental income from or get some capital gains from an appreciation in its value. It won’t be sold until some point in the future as no decision has been made and so it would not fall under IFRS 5.
Thanks
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