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Can I classify motor vehicles as investment properties and depreciate the asset in a different rate from existing vehicles classified under motor vehicles? These new vehicles to be used in a different operation.
in IAS 40 - Investment Property by

1 Answer

0 votes
No you cannot!

Investment Property is (Land & Buildings or both or a part) held held by the owner to earn rental or capital appreciation or both. Investment property is not held for own use in the production or supply of goods and services or for administrative purposes or sale in the ordinary course of business.

With the above definition we can clearly see that a motor vehicle is not an investment property as one cannot use it for capital appreciation because it is depreciated.

And leasing out motor vehicle is classified under IAS 17

I hope you get it!
by Level 3 Member (5.7k points)


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