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Forums › ACCA Forums › ACCA FR Financial Reporting Forums › IAS40 – Investment properties
Dear admin,
I would like to ask that are investment properties depreciated?
Coz I read in the LSBF’s course note for F7: “Stocks and shares would not normally be depreciated, so why should I.P.s? Therefore there is exemption available from depreciation”
How should I understand the last sentence? I mean “exemption from depreciation”
Look forward for your quick reply.
Many thanks.
IAS 40 is held for rental income or capital gains and must be rented to unrelated parties… normally the “fair value model” should be used in accounting for IAS 40,
unlike IAS 16, no RR and depn is used in a fair value model, but remember, always charge fair value gain or loss into SOCI under “other income”.
The cost model should be tested under IAS 16 but not IAS 40,
this is what i know abt this IAS, anyone correct me if i am wrong thx