INVESTMENT PROPERTIES FRS 140. Issue. Some properties comprise a portion that is held to earn rentals or for capital appreciation and another portion that is held for use in the production or supply of goods or services or for administrative purposes. At the end .. You should be able to.
ISSUE: partly used by enterprise and partly leased under operating lease??
Measured initially at its cost. Transaction costs shall be
included in the initial measurement.
(a) The cost of a purchased investment property comprises its purchase price and any directly attributable expenditure.
The cost of a self-constructed investment property is its
cost at the date when the construction or development is
complete. Before the property is classified as investment
property, an entity applies FRS 116 (PPE).
(i) At cost less accumulated depreciation and impairment loss
(ii) Increase in value (revaluation) of the investment property are recognised as revaluation surplus
(a) commencement of owner-occupation, for a transfer from investment property to owner-occupied property - (FROM)
(b) commencement of development with a view to sale, for a transfer from investment property to inventories (Property Dev Activities) - (FROM)
(c) end of owner-occupation, for a transfer from owner-occupied property to investment property. (TO)
Journal Entry for the transfer
Dt. Investment property RM60M
Dt. Accm dep RM5M
Cr. PPE RM50M
Cr. Revaluation reserve RM15M
Upon sale or by entering into a finance lease
Carryg Amt. of the asset