Investment Property - Building

Code: 1261
👁 Views: 95

Account Information

Financial Statement Statement of Financial Position
Normal Balance Debit

Definition

Buildings owned by the company for the purpose of earning rental income or benefiting from long-term capital appreciation, without being used in the company’s core operations. These buildings are classified as investment property and are held to generate returns either through leasing or future resale.

Common Journal Entries

Purchased short term investment

Dr. Short Term Investments
Cr. Bank Account

Received short term investment return

Dr. Bank Account
Cr. Investment Income

Liquidated short term investment

Dr. Bank Account
Cr. Short Term Investments

Impairment of short term investment

Dr. Impairment Loss
Cr. Short Term Investments

📐 IFRS vs US GAAP Accounting Treatment

IFRS IFRS 9 Financial Instruments
US GAAP ASC 320 Investments - Debt and Equity Securities
⚠️ Key Difference Between IFRS and US GAAP

Different classification frameworks between IFRS 9 and ASC 320

❓ Frequently Asked Questions

Q: What are investment property buildings?

A: Buildings owned by the company to earn rental income or capital appreciation, not for operational use.