12 June 2024 - Accounting treatment of properties

May 30, 2024

The accounting treatment of properties involves a meticulous assessment of various factors that significantly impact financial statements. Key considerations include modifications in property usage, fair value determination, and adherence to relevant accounting standards. Four important accounting standards to consider in this context are HKAS 16 Property, Plant and Equipment, HKAS 40 Investment Property, HKFRS 5 Non-current Assets Held for Sale and Discontinued Operations, and HKAS 12 Income Taxes.

This evaluation holds exceptional importance, particularly for distinct property types such as owner-occupied properties, investment properties, and non-current assets held for sale. Furthermore, it necessitates careful deliberation of the associated deferred tax implications.

In this webinar, we reviewed four accounting standards:

  • a. Revaluation of properties, plant and equipment.
  • b. Reclassification of property, plant and equipment to and from investment property.
  • c. Deferred tax implication on revalued property and investment property.
  • d. Accounting treatment of and reclassification to and from non-current assets held for sale.


Eunice Chu, CPA-EC Training & Advisory Limited, Chairman of AWAHK Professional Development Committee