Investment property under development
Investment property under development is initially recognized at cost price. Subsequently, when the fair value of the complete investment is reliably determinable the property under development will be measured at fair value.
All costs directly associated with the purchase and construction of a property and all subsequent capital expenditure connected with the development qualify as acquisition costs and are capitalised. Borrowing costs are capitalised if they are directly attributable to the acquisition, construction or production of a qualifying asset. Capitalisation of borrowing costs starts with the commencement of preparatory development activities giving rise to payments and interest charges. Capitalisation of borrowing costs continues until the assets are substantially ready for their intended use.
Source: Annual Report 2009, Chapter Finacial Statements, page 92 (PDF, 240 kB)
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