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PT Bandung Real Estate is a successful property company. They have been building apartment buildings in Bandung for sale or rental. At the moment they
PT Bandung Real Estate is a successful property company. They have been building apartment buildings in Bandung for sale or rental. At the moment they are developing tall buildings, each is floors Building A and Building B Their plan is as follows: building A to be rented to the international chain hotel management Hilton or Accor Hotels and Building B is be rented as office building. For Building A Bandung Real Estate will have a contract to rent the building for at least years with fixed annual payment for the first years and annually adjusted to inflation rate after years. For Building B Bandung A will use the first floors as their own main office and
another floors they will rent each floor to different companies.
The CEO of PT Bandung Real Estate hires you as accounting consultant to give advice on how the accounting treatment for these two buildings. What advice would you provide?
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