Share in ownership of investment propery - Printable Version +- Accountancy Forum (https://www.accountancy.com.pk/forum) +-- Forum: The Profession (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=4) +--- Forum: Accounting and Audit (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=7) +--- Thread: Share in ownership of investment propery (/showthread.php?tid=7861) |
Share in ownership of investment propery - noman - 04-23-2010 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)?? |