SSAP 19 Accounting for Investment Properties is an old standard but is still very relevant to today’s profession, explains Steve Collings.
It deals with how an entity should account for property which it holds for investment purposes, as opposed to properties which it owns for use in the ordinary course of business. This article will give a brief overview of some of the main requirements under SSAP 19 and look at how it differs with that of its international counterpart, IAS 40 Investment Property.
SSAP 19 defines investment property as an interest in land and/or buildings where:
- the construction work and development have been completed
- the interest is held for its investment potential, with any rental income being negotiated at arm’s length
About Steven Collings
Steve Collings, FMAAT FCCA is the audit and technical partner at Leavitt Walmsley Associates Ltd where Steve trained and qualified.