If a company's accounting policy for Investment Properties says the properties are revalued every 5 years, but a valuation wasn't done within that five years (but one will be done this year), what are the implications? What disclosures are required? Does the asset then have to be depreciated as a "normal" fixed asset?
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Firstly the company seems to have a non-compliant accounting policy. The requirement for investment properties is for annual valuation.
Secondly, don't worry about the past. Just get the next accounts right.
No - investment properties are not depreciated. They are not "normal" fixed assets. The accounting policy note should make that clear as well..
Thank you for the clarification.
No. An investment property is an investment property because of what it is, and the use that is made of it, and the reasons why it is held. It is not an investment property because of the way it is accounted for. Rather it is, or should be, accounted for the way it is because it is an investment property
I apologise for the length of this response, but I find the idea that something should be reclassified as something that it is not because it has not been accounted for correctly rather odd.