• Register
Search Questions / Answers

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. You can register with your email or with facebook login few seconds

Get AccountantAnswer App

Can I classify motor vehicles as investment properties?


Can I classify motor vehicles as investment properties and depreciate the asset in a different rate from existing vehicles classified under motor vehicles? These new vehicles to be used in a different operation.

asked Mar 5, 2014 in IAS 40 - Investment Property by anonymous

1 Answer

0 votes
No you cannot!

Investment Property is (Land & Buildings or both or a part) held held by the owner to earn rental or capital appreciation or both. Investment property is not held for own use in the production or supply of goods and services or for administrative purposes or sale in the ordinary course of business.

With the above definition we can clearly see that a motor vehicle is not an investment property as one cannot use it for capital appreciation because it is depreciated.

And leasing out motor vehicle is classified under IAS 17

I hope you get it!
answered Sep 14, 2014 by Fusion01 Level 3 Member (5,690 points)


...