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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS 40 Investment property
Hi Mike! IAS 40 allows us to choose between fair value model and cost model, but is there any criteria for choosing? For eg fair value can’t be measured so have to use cost model?
No criteria. Basically left to the discretion of the entity.
if we choose cost model, we need to depreciate it, but since the property is not held for use, depreciation seems not appropriate?
But it’s what the IAS says so its what we must do!
thank you for solving this!!!
No worries!