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Rent free period recognition for investment property being leased
1. should same be capitalised together with investment property or is it fine to recorde as receivables?
2. Also if capitalising within investment property, how to adjust in cash flow (indirect method)?

Not clear to me what you mean, lessor accounting or lessee accounting? If lessor accounting, operating lease of finance lease?

Lessor and operating lease

Accrued lease charge attributed to rent free period is a receivable