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?

Thank you.

Related posts:

1. Accounts Receivables collection through sale of assets Dear Experts, If accounts receivables from a customer is $1000....
2. Project cost – Leased land Dear all, This is my first participation in this forum....
3. Exchange difference on payment to contractor for development on fixed assets we have a contract for development of a fixed assets,...
4. Accounting treatment for rental deposit Hello fellow accountants, I am Ravishankar Reddy, a Chartered Accountant...

Related posts brought to you by Yet Another Related Posts Plugin.