According to IAS 16 Property, plant, and equipment should be recognized as asset when two criteria met;
- It is probable that probable that the future economic benefits related with the asset will flow to the entity, and
- Cost of the asset can be measured reliably
This recognition principle is applied to all property, plant, and equipment costs at the time they are incurred.
In this case both of criteria are not met for the building as the future economic benefits from the building will not flow to your entity but to the upcoming owner and further until the building is completed cost is not measurable, that is 10 years requires for the completion of building. Hence no depreciation should be charged on building as it is not recognized as asset.
To clarify the depreciation issue further, IAS 16 stated that Depreciation begins when the asset is available for use and continues until the asset is derecognized. Hence it further clarifies that no depreciation shall be charged on building in this case.