The basic methodology for analysing commercial property expenditure will remain consistent according to International Accounting Standards.

It is possible to depreciate different items within a property alongside their economic lives and often the accounting basis is used to determine the appropriate tax deduction for the relevant assets, or specific items may qualify for schemes operated by the tax authorities such as the Irish capital allowances regime.

On occasion, specific taxation legislation will limit the deduction or suggest appropriate basis but invariably, by valuing different components of the property separately, the investor’s taxation position will be improved and the appropriate deductions will much more closely match the true economic life of the items.