Hello As per IAS 40, investment property is land and /or building held for capital appreciation or rental income and is not depreciated. My question is, what happens if its being held for some years and the value appreciates each year but then for whatever reason the value starts to decrease year after year. How is this recorded in the books?
Investment property is measured at fair value at each reporting date. Any change in fair value, whether that be a gain or loss, goes through profit or loss.