My company is involved in renting of properties and selling of developemt properties. We currently have development properties that are held for immediate sale. However, due to the property is completed and vacant, the unit is available for rental to staff (for recreation purpose) in order to earn rental income. As such, can we still classify the development property as asset held for sale?
The argument is that the asset is saleable at any time if there is interested buyer and there are ongoing plans to make the unit saleable. Hence the rental income is classified as incidental income.
My question is that, is the accounting treatment, asset held for sale, correct, in this context?