Real Estate
Transfer: Inventory to Investment Property
Moving a completed apartment from 'For Sale' (Inventory) to 'For Rent' (Investment Property).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Investment Property (at Fair Value) | Asset (+) | 120,000.00 | - |
| Inventory (at Cost) | Asset (-) | - | 100,000.00 |
| Gain on Transfer to Investment | Revenue (+) | - | 20,000.00 |
💡 Accountant's Note
If you decide to rent out a unit you originally built to sell, IAS 40 requires you to move it to Investment Property. Any jump to 'Fair Value' at that moment is recorded as a gain.
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