One of the many favoured investment options is to buy properties for capital gains and rent it to receive passive rental income. Such properties are classified as developed or development properties in the balance sheet of the Company. Put it simply, these properties are built to be resold to end users.
In this post, I hope to let readers have a better understanding on how these development properties are being accounted for and also to shed some lights on a developer illustrated and how we can appreciate the value within using Bukit Sembawang as case study.
The Financial information below is extracted from the annual report of Bukit Sembawang for the financial year ended 31 March 2016.
|Cash and cash equivalent||411,908|
|Trade and other payables||141,048|
|Cost of sales||(169,998)|