Question
If a company owns a building with 4 stories, half of this building (2 stories) is used for renting, the remaining is used for administration
If a company owns a building with 4 stories, half of this building (2 stories) is used for renting, the remaining is used for administration purposes. So the building is recognized as an investment property or owner-occupied property ?
I read in IAS 40, para 10 stated that If the portions could not be sold separately, the property is investment property only if an insignificant portion is held for use in the production or supply of goods or services or for administrative purposes.
So I don't how if the portions for investment property and administrative purposes (owner-occupied property) are equal, what the property should be recognized?
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