AC2101 S1 2014 Seminar 5 Leases (Anil).pptx

In18 13 ong ltd has leased a property

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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...
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