The April 2014 amendments to the FRSSE (effective April 2008) and the FRSSE (effective January 2015) to incorporate the micro-entities regime included the requirement for micro-entities to account for investment properties using historical cost, in accordance with the legal framework for micro-entities. However, paragraph 1.2 of the FRSSE (effective April 2008) and the FRSSE (effective January 2015) may appear unclear in relation to the application of depreciation and impairment as part of the cost method.
Paragraph 1.2 of the FRSSE (effective April 2008) and of the FRSSE (effective January 2015) is amended as follows (deleted text is struck through, inserted text is underlined):
1.2 A micro-entity preparing its financial statements in accordance with section 393(1A) of the Act:
(d) shall account for any investment properties at cost less depreciation and impairment in accordance with paragraphs 6.19 to 6.22, paragraphs 6.38 to 6.42 and paragraphs 6.45 to 6.46 and 6.48 rather than paragraphs 6.18, 6.37, 6.44 and 6.50 to 6.53;