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What costs can you capitalize on the purchase of an investment property?

We have purchased an investment property and incurred costs in terms of the transferring attorney to transfer the property in our name. I'm assuming these costs can be capitalised? Additionally, bond attorney fees for the registration of the bond over the property. I'm not so sure these can be capitalised. Any clarification would be appreciated.

asked Jun 30, 2017 in IAS 40 - Investment Property by anonymous

1 Answer

0 votes
An investment property shall be measured initially at its cost. Transaction costs shall be included in
the initial measurement.
The cost of a purchased investment property comprises its purchase price and any directly attributable
expenditure. Directly attributable expenditure includes, for example, professional fees for legal services,
property transfer taxes and other transaction costs.
So you can capitalised it
answered Jul 28, 2017 by umarhussainia Level 5 Member (11,320 points)