Project cost – Leased land
2 April 2010
1,960 views
2 Comments
Dear all,
This is my first participation in this forum. i have a question 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 costs 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 compination of land and building as Investment Property e.g land comprise more 20% of the total project value..etc
Regards
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