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Deli ProReal owns a 10 storey building in Kota Raya Melaka. The ground floor is occupied for its general administration office and the remaining floors
Deli ProReal owns a 10 storey building in Kota Raya Melaka. The ground floor is occupied for its general administration office and the remaining floors are leased to several companies. The lease term shows that the lease is an operating lease according to MFRS16 Lease where there are a few restrictions imposed on the lessees' right of use. Deli ProDeal management seeks your opinion whether the building should be classified as properties according to MFRS116 Property, Plant and Equipment or according to MFRS140 Investment Properties. Required: Discuss the classification issue for the property according to appropriate accounting standard
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