Fixed asset received but not delivered to division

[Xekpoc]

Hello,
I'm looking for an answer when a asset should be recognized as PPE according to IFRS standards in the following situation:
The company bought an asset which was delivered by the supplier to one of the Company's division so the entry - Dr. Purchase of FA Cr. Payables - is made.
The asset does not require assembly or installation.
The Company currently is not using the asset but planning to transfer it to another division after one to three months.

The question is should be an asset recognized as PPE once it was delivered by the supplier to the company and depreciation should begin to be charged as well
(the entry Dr. FA Cr. Dr. Purchase of FA is made).
Or should it stay at the account "Purchase of FA" aka CIP account until it is finally delivered to the right division .

 

[UKFCA_London]

Looking at it from the standalone perspective of the Company currently holding it, I don't think you have a fixed asset given you are not going to hold it long-term (see IAS 16:6, PPE are tangible assets that....are expected to be used during more than one period). I would probably put it in Inventory.

If you are looking at it from a Consolidated perspective (assuming this will be an intra-group transfer), it would be PPE there. But slightly less clear from what you are saying, looking at IAS 16 para 55 I'm not sure depreciation should start as it is not in 'the location and condition necessary for it to be capable of operating in the manner intended by management', so I would probably put it in CIP (though I would expect to have some challenge on that from the auditors).