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Hello OpenTuition. Im curious as to why do we recognize the remeasurement gains/losses of Investment property into P/L than OCI? My understanding is that P/L reflects performances of core or business activities while OCI reflects non-core business activities (e.g Forex/PPE revaluations).
Does this mean that Investment Property is related to the production of gross Income?
Hi,
We invest in IP as an alternative to investing in equity or debt. Any gains/losses on these instruments will go through profit or loss, so the gain/loss on IP goes in the same place.
OCI doesn’t necessarily reflect non-core business activities, it reflects gains/losses not yet realised.
Thanks
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