Analysis of the Investment Property Rules

Running head: ANALYSIS OF THE INVESTMENT PROPERTY RULES
Analysis of the Investment Property Rules
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Author’s Note

ANALYSIS OF THE INVESTMENT PROPERTY RULES1
Executive Summary
The aim of the report is to analyse the framework of the AASB 140 for investment property.the
AASB 140 has specified some general guidelines that the entities should follow in order to bring
transparency in the transactions of investment in any property. The report gives a brief idea about
the methods that are required to evaluate the valuation of nay property.

ANALYSIS OF THE INVESTMENT PROPERTY RULES2
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................8

ANALYSIS OF THE INVESTMENT PROPERTY RULES3
Introduction
The AASB set the rules that an entity should follow before investing in any property. The
rule sets the guideline, which is mandatory for every entity that deals in investment property. The
financial statements of the entity should be made according to the rules of the AASB and the
company should made all necessary disclosure to ensure the transparency in recording the
accounting entries for investment property.
Discussion
(A) The accounting policies of SCP and the regulations that dictate the accounting policy of SCP
In accordance with the AASB 3, the SCP group prepare the financial statements the
shopping Centre management trust has been considered as the parent company for preparation of
the consolidated financial report.
The SCP group while recording the accounting entries adopts the following methods
Historical cost convention
The financial statements are made on the basis of the historical cost except for recording
certain non-current assets and financial instruments that are measured in the fair value.
Going concern basis
The consolidated financial statements are prepared on the going concern basis.in the note
to the financial report the directors has stated that the group and the retail trust are in a net
current assets deficiency position due to minimal balance in cash and cash equivalent.
Rounding off