Question

Entity owns a building, part leased to tenants, part

Q: Answer-Entity owns a building, part leased to tenants, part used for admin. How should it account?

Property portions are treated separately if portions can be soldleased separately. Otherwise, if insignificant owner-use, entire property investment property.

used for admin. How should it account?

A Entire building as PPE.

B Entire building as investment property.

C Split: leased portion = investment property; used portion = PPE.

D Choose any policy consistently.

E Account as inventory.

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Entity owns a building, part leased to tenants, part

Solution