Real Estate
Initial Recognition of Investment Property (at Cost)
Recording a building purchased specifically to generate rental income as an investment property under IAS 40.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Investment Property (at Cost) | Asset (+) | 800,000.00 | - |
| Cash / Bank | Asset (-) | - | 800,000.00 |
💡 Accountant's Note
Under IAS 40, a property held to earn rental income or for capital appreciation is classified as Investment Property, not PPE. It can be measured at cost or fair value.
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