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IAS 40 Land and buildings
Posted: 23 Feb 2024, 07:54
by stella
A Company purchased a plot of land including a building on it. In its books is classified as an investment property . Depreciation of 3% applies.
My question : Do we have to split value of land and value of building and apply depreciation 3% only in building value?
Re: IAS 40
Posted: 23 Feb 2024, 10:52
by JRSB
yes. why did you choose the cost model? always seems odd as you have to disclose the fair value anyway.
Re: IAS 40 Land and buildings
Posted: 23 Feb 2024, 11:12
by Marek Muc
yes:
https://ifrscommunity.com/knowledge-bas ... -buildings
PS. Please use more descriptive topic titles, 'IAS 40' was too generic!
Re: IAS 40 Land and buildings
Posted: 07 Mar 2024, 13:19
by stella
Ok. The same applies if in the building that has been classified as investment property, there are furnitures? Furnitures will be depreciated separately but will also be included under Inv. Property category, correct?
Re: IAS 40 Land and buildings
Posted: 07 Mar 2024, 17:41
by Marek Muc
yes
Re: IAS 40 Land and buildings
Posted: 07 Mar 2024, 17:52
by stella
Thanks a lot