Post Reply 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Share in ownership of investment propery
04-23-2010, 08:12 AM
Post: #1
Share in ownership of investment propery
A company has joint ownership of a building whose primary purpose is to earn rentals by renting out floor space.

The initial amount invested by the company is Rs.270 (30%) out of a total investment of Rs.900 ( in which Rs.630 is initial investment by other co-owners).

The company has the right to share in profits (excess of rentals over maintenance expenses) in the ratio of its investment i.e 30% of any profits earned by the building.

The company does not have any title to any specific floor,area,land of the building....only 30% share in total ownership..

How should this be accounted for??

1. As investment property under IAS-40?

2.Simple investment (falling in one of 4 categories under IAS-39)??
Visit this user's website Find all posts by this user
Quote this message in a reply
Post Reply 

Forum Jump:

User(s) browsing this thread: 1 Guest(s)