Investment property FRS 105

Investment property frs 105 or frs 102

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A company acquired 3 investment properties on 1 April 2015. I prepared the accounts according to frs 102 for year end 31 March 2016. There was no change to the fair value of the investment properties as at 31 March 2016.

 

Now I am preparing the accounts for 31 March 2017 and want to adopt frs 105 and the company fulfil the criteria of micro entity.

I just like to know if it will be okay to reflect the investment properties at cost without any depreciation.

The director of the company is a non resident and doesn't know the FV of the investment property and since the reason for not preparing the accounts under frs 102.

The director do not intend to use professionals due to cost involved.

Any suggestions / comments?

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By Wanderer
25th Jul 2017 17:13

Sita wrote:

I just like to know if it will be okay to reflect the investment properties at cost without any depreciation.

Not what FRS105 says.
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RLI
By lionofludesch
25th Jul 2017 17:33

The directors would struggle to justify not using professionals on the grounds of cost. FRS 102 pretty much says that cost isn't an excuse for non-compliance.

How well that's policed is, of course, open to merriment and ribaldry but, as a professional, you might need to consider your own position.

Exactly how much is this "excessive" cost ? A few hundred ? How does that compare to your own fee ?

Rhetorical questions, obviously. But you may like to consider them.

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