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Rental property appropriate disclosure

Rental property

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A limited company that owns and rents several residential properties. What is the most apporpriate disclosure for the assets i.e. stock, investment property or fixed asset?

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By pauld
13th Jan 2021 12:43

Well I guess that obviously depends on what they are doing with them, selling, renting, developing etc

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RLI
By lionofludesch
13th Jan 2021 14:03

I vote renting, if that helps.

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By Tickers
14th Jan 2021 12:13

Renting

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By paul.benny
13th Jan 2021 14:29

FRS102 and FRS105 are freely available from the FRC website.

To save you the trouble of looking for yourself, the glossary to FRS105 defines investment property as

Quote:
Property (land or a building, or part of a building, or both) held by the owner or by the lessee under a finance lease to earn rentals or for capital appreciation or both"
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Hallerud at Easter
By DJKL
13th Jan 2021 17:07

Do remember to consider valuation issues and deferred tax. Also accounts note re fixed securities over the properties, if any. I also do historic cost note and basis of valuation note in ours.

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By Tickers
14th Jan 2021 12:12

Historic cost note as an accounting policy or within the note for the investment property itself?

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By Tickers
14th Jan 2021 12:13

Historic cost note as an accounting policy or within the note for the investment property itself?

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Hallerud at Easter
By DJKL
14th Jan 2021 13:57

Under the IP note to the accounts, the normal opening, additions, disposals, revaluation, closing I run a narrative note stating the valuation arrived at, usually something like,

" The directors have valued the investment properties taking into account the valuation by XXXXXX, Charted Surveyors on xx/xx/xxxx."

I then will do something like,

"The historic cost of the investment properties is £x,xxx,xxx (2018 £x,xxx,xxx) "

and finally a note that " The Investment properties are secured to XXXXX bank who hold standard securities over Investment properties valued at £x,xxxx,xxx ( 2018 £x,xxx,xxx)" (I now put values as previously all well secured whereas now only some are secured)

I also direct the reader to the creditors note.

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