Investment property classified as held for sale

If the sale of an operative investment property is deemed highly probable, such a property is transferred from the balance sheet item “Investment property” to “Investment property held for sale”. On that date, the carrying amount of the property is considered to be recovered principally through a sales transaction rather than through continuing use in rental. Reclassification requires that a sale is deemed highly probable, i.e.

• The investment property is available for immediate sale in its present condition subject to usual and customary terms
• Management is committed to an active plan to sell the property and VVO Group has initiated a programme to locate a buyer and complete the plan
• The property is actively marketed for sale at a price that is reasonable in relation to its current fair value
• The sale should be expected to qualify for recognition as a completed sale within 12 months of the date of classification.

Investment property held for sale is recognised at fair value.