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When subsequent measurement is made of an investment property why are properties under the fair value model not depreciated but properties under the cost model depreciated like any other asset?
Hi,
Sorry for the very slow response, I’ve been busy elsewhere recently.
If you think of shares as an alternative investment to property, then we wouldn’t depreciate those, and instead just adjust its value for changes in share price. It therefore follows the same reasoning that if we’ve bought property as opposed to shares for investment purposes then we treat it the same as we would if we bought share.
Thanks
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