Rules for Investment Property
Accounting rules for investment property are identical to those of an asset in general. Two conditions must be met:
- It is probable that future economic benefits associated with the investment property will flow to the company
- The cost of the building must be measured reliably.
The first criterion is generally met when the risks and benefits of investment property have been transferred to the company. The second criterion is also often observed, that the investment property is acquired (acquisition cost) or manufactured (production cost). Two accounting methods may be used by the enterprise to recognize investment property at the time of its acquisition or during subsequent evaluations.
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Value of Property Asset | 3 Days Business Guide Says:
July 26th, 2010 at 6:03 pm
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