Calen Limited owns an office park that it developed during the current reporting period at a cost of R200 million. Calen Limiteds head office is situated in the office park in a standalone building. The balance of the office park is let out to tenants under non-cancellable operating leases that vary in duration between 3 and 5 years. Calen Limited intends to keep the office park in its existing use indefinitely.

Write a letter to the financial director of Calen Limited in which you set out how Calen Limited should account for the office park (with references to IAS16 and IAS40)