In September 2019 Venues Ltd purchased the top floor unit of an office building in Melbourne for $400,000. Over the next six months Venues Ltd spent a further $200,000 to convert it to a function room for events, such as large parties, graduation dinners and wedding receptions.The function room has an expected useful life of 10 years.

Due to Covid-19 restrictions on social gatherings, Venues Ltd has been unable to use the function room.

Describe an accounting policy for the function room that is consistent with theConceptual Framework. You do not heed to provide reasons for your policy.