Assets Held for Demolition

[GKMC]

Hi,
Our Council is in the process of buying few properties, demolishing those properties and make a park on it or keep it for open space. I have few questions on this:

1.Capitalisation Process – we will record the Land value and building value separate in our book, however, do we keep these assets under a separate category as well (like assets held for demolition etc) and not depreciate?
2.Demolition Process – will the building value be booked for a loss?


Many thanks
Gagan