Accounting Treatment of Shared Office Complex Under Ind AS Framework
- Blog|News|Account & Audit|
- < 1 minute
- By Taxmann
- |
- Last Updated on 25 January, 2025
Latest from Taxmann
This document provides an analysis of the classification of a portion of a shared office complex under Ind AS 40, focusing on the two floors in Tower B utilized by the Parent Company. The issue arises from differing interpretations of whether the property should be classified as Property, Plant, and Equipment (PPE) or Investment Property, considering the rental arrangement introduced through a Memorandum of Understanding (MoU). Key provisions of Ind AS 40, such as the primary intent of property use, dual-use criteria, and separability of portions, are discussed. The document delves into the Company’s justification for administrative use, audit concerns about classification, and the practical challenges posed by inseparability of portions under the existing leasehold arrangement. The analysis ensures that the treatment of such dual-use properties is aligned with Indian accounting standards while addressing operational realities.
Click Here To Read The Full Story
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
