Question

According to the GAM for NGAs , govt entities shall not depreciate an asset while it is classified as investment property

Answer 1

Answer:

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Answer 2

Answer:

According to the Government Accounting Manual shall depreciate its assets Except Land

Explanation:

According to Government Accounting Manual (GAM) for National Government Agencies

Investment Property refers to entities in which investment done for acquiring assets such as land and building. This investments is done for earning rent from these entities or for capital appreciation ( increasing in value of assets) or both. This investment is not done for use in the production or supply of goods or services, for administrative purposes, or sale in the ordinary course of business

Items considered as Investment Property:

The following are examples of Investment property:

a. Land held for long-term capital appreciation rather than for short-term sale in the ordinary course of operations;

b. Land held for a currently undetermined future use

c. A building owned by the government (or held by the government under a finance lease) and leased out under one or more operating leases on a commercial basis;

d. A building which is not in use or we can say that is vacant  but is held to be leased out under one or more operating leases on a commercial basis to external parties;

e. Assets which is in under working or which is developed for future use as Investment property ; and

f. Property which is used in the production or supply of goods or services or for administrative purpose

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