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Property classification

12 September 2007
Issue: 4125 / Categories: Forum & Feedback

One of our clients is involved in property development and has been obliged to prepare its financial statements in accordance with international accounting standards. The adoption of these standards resulted in the reclassification of a number of developments from stock to fixed assets as either assets under construction or investments.

The transfers took place in the accounts at cost, which was significantly lower than market value.

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