Investment Property
The company owns non-commerical properties, which are rented out.
The properties are classified as an investment properties in accordance with accounting standard FRS 102 Section 16, as it is held to earn rental income and for capital appreciation.
Valuation:
The properties are stated at cost, and any depreciation/fair value changes are recognised in the financial statements as required by the applicable accounting framework.
Rental Income:
Rental income from the property is recognised on an accruals basis over the term of the tenancy agreements.
Expenses:
Expenses related to the property, including maintenance and utilities where applicable, are charged to the profit and loss account as incurred.
Taxation:
The rental income is subject to corporation tax in line with the company’s taxable profit.