AC2101 S1 2014 Seminar 5 Leases (Anil).pptx

In18 13 ong ltd has leased a property

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: hold land *  FRS 17: omitted the para. that land has indefinite life 10 5 Review: Investment Property (FRS 40) Property (land and/or building) held by owner or lessee under a finance lease to earn rentals &/or for capital appreciation (i.e., investment purposes) & NOT for 1.  Owner- occupied purposes (FRS 16) v༇  v༇  2.  Use in production/supply of goods/services, or Administrative purposes Sale in ordinary course of business (FRS 2) FRS 40:5 11 Review: Investment Property (FRS 40) §༊  Recognition *  Per general asset recognition principles §༊  Measurement a.  On initial recognition §༊  At cost comprising purchase price & directly attributable expenditure b.  After recognition §༊  Includes subsequent costs to add to, replace part of or service a property but exclude day- to- day servicing costs §༊  To choose either cost or FV model for all IP 12 6 A Note on IP and Leases *  Property interest held by lessee under operating lease c...
View Full Document

This document was uploaded on 02/10/2014.

Ask a homework question - tutors are online