This assignment was written as a result of COVID-19’s entry into the world economy and the consequences this had for the Danish investment property market. The purpose of the thesis is to investigate whether the Danish market for investment properties is affected by COVID-19, and how investment properties are treated accounting wise as well as tax wise. The assignment contains a description of the basic theory that applies to financial reporting. In addition, a review of investment properties and the measurement attributes that can be used is included. A review of the Danish Financial Statements Act and its accounting classes, as well as the requirements that apply to investment properties in the various accounting classes, is therefore included. In order to be able to answer this, an analysis of 5 Danish companies’ annual reports has been carried out, with a view to identifying a possible COVID-19 impact on the value adjustments of the companies’ investment properties. Finally, the advantages and disadvantages of the Danish Act on Taxation of Profit from Sale of Property are discussed, which are compared with the advantages and disadvantages of the new proposal regarding tax of the notional gain (on portfolio value growth) of investment properties. The conclusion of the thesis shows that the market for investment properties is not particularly affected by COVID-19. However, the hotel and retail market has been affected due to lack of tourism and regional restrictions. The assignment also shows that the advantages seem greatest for the current Danish Act on Taxation of Profit from Sale of Property compared to the proposal regarding tax of the notional gain (on portfolio value growth) of investment properties. The benefits of the new proposal seem to be greatest only for the Danish Ministry of Taxation.
|Educations||Graduate Diploma in Accounting and Financial Management, (Diploma Programme) Final Thesis|
|Number of pages||85|