A client has bought land on which it will construct villas and then it will sell the villas together with the land.
Currently it cannot construct the villas because it has not yet obtained the licence.
The company is in the process of applying for the license. If it obtains the licence then it will start construction.
Should land currently be classified as inventory (ias 2) or investment property (ias 40)?
If intention of the organizer is clear about development &/or construction of the land, it will be classified as inventory.
CAclubindia
