What is the difference between PPE as per Ind AS 16 and owner occupied property as...

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What is the difference between PPE as per Ind AS 16 and owner occupied property as...

What is the difference between PPE as per Ind AS 16 and owner occupied property as defined in Ind AS 16?

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Answer 1

Answer #1

PPE as per IND AS 16 shall be recognised when its cost can be reliably measured and it is probable that future economic benefits will flow to the entity, PPE is held for the purpose of production of goods or rendering of services or for administrative purpose or for rental purpose.

Property like land and building which is held for rental purpose or capital appreciation is also known as Investment property as per IND AS 40.

However owner occupied property, held in business for production of rendering of services, is excluded from the category of Investment property.

Hence,definition of PPE as per IND AS 16 also covers Investment property whereas owner occupied property does not covers Investment property.

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Answer 2

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