Assume that you are Mr. Kasino, the finance manager, and draft a report for Mr. Indro, the Chairman of Alfa-Group. In your report, you should discuss and comment on Mr. Dono’s argument that the warehouses should be treated as investment properties so that they are not subject to depreciation
Alfa-Group, together with its subsidiaries as a group, is principally engaged in the provision of integrated logistic services, which include the planning, procurement and logistics management of construction materials mainly for infrastructure projects in Banten Province.
Mr. Dono suggested in his report that no
Warehouses are investment properties because rental is charged to the customers if they delay the receipt of cargoes from the warehouses.
Required: Assume that you are Mr. Kasino, the finance manager, and draft a report for Mr. Indro, the Chairman of Alfa-Group. In your report, you should discuss and comment on Mr. Dono’s argument that the warehouses should be treated as investment properties so that
they are not subject to depreciation.
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