Home For AAT student members AQ 2016 Foundation Certificate in accounting General discussion - Foundation level

Buy to let

Is a buy to let property deprecated?

Thank you

Comments

  • wills135wills135 Registered Posts: 30
    I'm sorry, I did of course mean depreciated.

    Thank you.

    Can I assume the 'can' in your reply implies there are various reasons why you can not depreciate?

    Thanks
  • BertieBertie West Midlands Registered Posts: 376
    Cost or fair value model.

    If you're reading FRS 102 I'd advise you to read IAS 40 alongside it.

    FRS 102 is quite short and barely touches the surface - yes it was developed to be easier to work with, but for full answers you'll need the full IAS / FRS, even if it for an explanation of X event.

    From memory; within FRS 102, investment property takes up chapter 16 - so not much.

    Without searching through IAS 40, the wording flows (similar to..) as; if an investment property can not be measured at a fair value, without breaking the bank in getting it valued - each period, then the cost method should be used and treated as PPE.
    wills135
  • wills135wills135 Registered Posts: 30
    Thank you for your responses.
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