Accounting for Real Estate
This query is : Resolved
25 July 2009
Hi,
Can anyone guide me as to which accounting standard is applicable for real estate developments capitalisation considering the following points -
a) AS-10, I believe is not applicable , as expenditure on real estate developments is specifically excluded in the standard.
b) Where the co. is engaged in construction of commercial properties and leasing these out, what would be the time when the project can be capitalised, if the building is complete but external developments eg facade etc are still going on ? Can partial capitalisation be done in such cases? (Further, the rentals have started generating as these have been handed over to the tenants for interior fit outs)
Thks
Can anyone guide me as to which accounting standard is applicable for real estate developments capitalisation considering the following points -
a) AS-10, I believe is not applicable , as expenditure on real estate developments is specifically excluded in the standard.
b) Where the co. is engaged in construction of commercial properties and leasing these out, what would be the time when the project can be capitalised, if the building is complete but external developments eg facade etc are still going on ? Can partial capitalisation be done in such cases? (Further, the rentals have started generating as these have been handed over to the tenants for interior fit outs)
Thks
30 July 2009
As they built commerciapl properties and they give on lease; the properties will be acquired by them. So, It should be capitalised by the developer. (hopefully AS 19 will be applicable)..
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