This is my first participation in this forum. i have questions regarding the land as an operating lease.
We have a leased land used for a project. Currently the lease rent is being capitalised as land costs- Property Under Development, on the basis that this cost was incurred to bring the assets into operations.
My questions are:
1- Can the above treatment considered correct in anyway?
2- We want to transfer the land and building from PUD to Investment Property- what options do we have?
3- Are there any conditions to have the combination of land and building as Investment Property e.g land comprise more 20% of the total project value..etc