Question
Other than the above buildings classified under HKAS 16, Zeta also has a portfolio of buildings (or part of the buildings) treated as investment properties
Other than the above buildings classified under HKAS 16, Zeta also has a portfolio of buildings (or part of the buildings) treated as investment properties as at 30 November 2020. They are as follows:
(i) Building being self-constructed for future use as investment property
(ii) An unused flat let out to directors of Zeta
(iii) Former warehouse, unoccupied and no longer required as a warehouse future use to be determined The newly appointed accounting manager of Zeta is not certain about the accounting classification of the above three buildings.
Discuss the accounting classification regarding the three investment properties in the statement of financial position of Zeta. In your answer, you are not required to provide any calculation but you need to make reference to relevantHKFRSs in your discussion.
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