Please there is an LLP that has a house and the 2 designated members will be using the house as their home in the next accounting year (2020) not the current year (2019) under preparation. The property has been classified as investment property in the past but client want to classify as freehold in the current year, please is this right?
Secondly, the LLP isn’t going to own the house – the land it sits on has been transferred to members, and the costs incurred have been recharged out, in next accounting year (2020) – in which case should the costs of the property go to ‘other debtors’ in the current year (2019) accounts under prep?
Will appreciate your contribution, thanks.
Should this not be treated as disposal in the next accounting year and remain under fixed asset in the current year?