MyCIMA

Capitalising search and legal fees on leasing a new property

Posted: Monday 15 February 2010 by Niamh Moloney
Replies : 2
Keywords: capitalising, legal fees

Hi,

Just wondering if someone could confirm whether it's correct to capitalise legal and search fees on a new leased property over the term of lease and which IFRS supports this.

Thanks 

 

Capitalising search and legal fees on leasing a new property

Posted by Bill Haskins on Wednesday 03 March 2010 14:22
Hi Niamh,

A colleague who has expertise in this area has told me that the answer is yes if directly attributable, and the relevant IFRS is IAS 17 – Leases (see paragraph IN11).

If this is an investment property you should refer to IAS 40 – Investment Property, and different rules will apply.

You may know this already, but the full text of the IFRSs is available on the IASB website at

http://www.iasb.org/IFRSs/IFRS.htm

Regards,

Bill Haskins, CIMA

Capitalising search and legal fees on leasing a new property

Posted by Niamh Moloney on Friday 06 August 2010 09:32

Many thanks Bill