AUDITORS/REVIEWERS/COMPILERS PLEASE TAKE NOTE
In all accounting policies that I read the following is said and RIGHTLY SO:
Where parts of an item of PPE have different useful lives they are accounted for separately. AUDITORS ARE HAPPY. The policy then states the useful life of the building is 40 years and land is not depreciated. WONDERFUL AND AUDITOR IS HAPPY. One then goes to the actual notes and land and buildings are shown as one asset. AUDITOR IS HAPPY. AUDITOR SHOULD BE VERY SAD AS THE COMPANY IS CONTRAVENING THEIR OWN ACCOUNTING POLICY. LAND AND BUILDINGS HAVE SEPARATE USEFUL LIVES AND MUST BE SEPARATED.
P 58 IAS 16 - Land and buildings are separable assets and are accounted for separately, even when they are acquired together.
BEWARE - THE FINANCIAL STATEMENTS DEFINITELY DO NOT COMPLY WITH IFRS AND MAY NOT BE PRESENTED FAIRLY
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