Question
BBA-VII (Pvt) Limited is local government organization that owns a credible portfolio of properties which includes the properties which are surplus to the functional requirements
BBA-VII (Pvt) Limited is local government organization that owns a credible portfolio of properties which includes the properties which are surplus to the functional requirements and some other properties which are held by the entity for different purposes.
The portfolio includes several plots of land which are held for capital appreciation and may be sold in the future. The entity has also some properties which have no current purpose, as the entity has not yet determined whether it will use those properties to provide services such as those provided by national parks or will put these on sales in the ordinary course of business.
BBA-VII (Pvt) Limited also has a housing department to deal with regular sale and purchase of some plots of land included within the portfolio of the properties, in the normal course of business to supplement its income. Parts of the portfolio, some properties which are not held for sale, are provided as a housing facility to low-income employees at nominal rentals, which are then used to cover the cost of maintenance of the properties.
How the properties included in the portfolio will be accounted for in the financial statements of BBA-VII (Pvt) Limited? (Note: Answer should be precise and direct)
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