Anyone have time for a property que?

whats that

property under construction - per BPP - should be accounted for by IAS16
but I've read elsewhere its pemissible re clasification under ias 40 and can be 'fair valued'

what say you?

My thanks
M

if the property has to be treated as investment property and not used by the entity it has to be valued at open market value
i.e fair value and to be checked for impairment annually. as per SSAP 19

full revaluation carried out every 5 yrs and interim every 3 yrs

does it answer ur question..?

thanks very much

I'm INT rather than UK

Maybe is slightly differrent?

Basically BPP are saying investment property under construction has to be classified under IAS 16 - Propety , Plant Equipment (unless complete)

But I think IAS 40 applies to such an asset..........

anyway no big deal

thanks for your time

following is an extract from

http://www.iasb.org/NR/rdonlyres/0E7AB953-8BE4-4799-97BC-A3BDE0B01A3E/0/IAS40.pdf


The Standard permits entities to choose either:
(a) a fair value model, under which an investment property is measured, after initial measurement, at fair value with changes in fair value recognised in profit or loss; or
(b) a cost model. The cost model is specified in IAS 16 and requires an investment property to be measured after initial measurement at depreciated cost (less any accumulated impairment losses). An entity that chooses the cost model discloses the fair value of its investment property.
The fair value of investment property is the price at which the property could be exchanged between knowledgeable, willing parties in an arm’s length transaction.
An investment property shall be derecognised (eliminated from the balance sheet) on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal

I think both are acceptable it depend on the entity which ever standard to choose and then make necessary disclosure.

what a tremendously decent soul you are - thank you

unfortnately it doesnt specify whether this is only completed or includes incomplete but I'll access the site - you've gone to enough trouble

again thanks