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Cost of Investment Property as per Ind AS 40

ankita sharma (student) (6 Points)

15 September 2020

If someone purchased a Land for Rs 20 lakh and constructed a building on it costing Rs 40 lakh, then at what amount should the assest be recognized in Balance Sheet 60 lakh or 40 lakh. And at which amount depreciation will be charged in future Rs 40 lakh or 60 lakh?

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yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 15 September 2020

Since you have purchased land and built a building over it, the balance sheet figure will be 60 lakhs. Depreciation on building only and not on land ie., 40 lakhs.