Chandrarathna, A.G.K.Thilakarathna, P.M.C.2016-03-162016-03-162016Chandrarathna, A.G.K. & Thilakarathna, P.M.C. 2016. Recognition of Investment Property. Case Studies in Accounting “Bridging the Gap”, 03: pp. 03-04. Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka.http://repository.kln.ac.lk/handle/123456789/12172ABC is one of the Manufacturing Companies in Sri Lanka and operating as the market leader for roofing sheets in Sri Lanka. XYZ is a fully owned subsidiary of ABC. ABC company acquired a land in 2010 for Rs:50,000,000/= and this land was leased to XYZ on operating lease for 40 years lease term which has annual lease value of Rs. 14,404,200/=.They have entered in to that lease agreement in 2013.enArticle