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SBR

Investment properties (IAS 40) - ACCA (SBR) lectures

VIVA Subject Guide

11 Comments

  1. yj861224
    When a property under development, which is inventory, transfers into IP, the fair value is higher than the cost. what should the gains recognize?profit or OCI?
    thanks.
  2. bex01
    If a building is partly owner occupied and partly rented can the rental portion be classified as investment property.
  3. Paolina
    In the example what happens then to the revaluation surplus of 1.5m?
  4. Urmil
    it goes to OCI (SPLOCI)
  5. DilyaraSupporter
    This $1,5m will stay in OCI until the building will dispose/sold?
  6. antonella
    example 7: Investment property and change of use

    in the example worked why is it that on 1st JUly, 2015 the property is treated under IAS 16 whilst the question state that on 1.07.2015 it was decided to lease the property?

    thanks and Regards

    AM,
  7. shayan
    If lessor gives property on operating lease to the lessee, then in the books of a lessor this property will be treated under IAS 16 or IAS 40 ? Please clarify

    Thanks
  8. Urmil
    obviously IAS 40 dear as he is renting his property
  9. poon3110
    Hello
    In chapter investment property example7, IP and change of use.
    Does the depreciation charge $0.5m will be charged in P/L even if it has change of use?
    thx in advance.
  10. P2-D2Tutor
    Hi,

    Yes it is as for the first six months of the year the building was held as PPE and would have been accounted for under IAS 16.

    Once it is held as IP then it is no longer depreciated.

    Thanks
  11. vlake
    A company's revenue is gaining revenue mainly on operating lease. If it is using fair value model to measure subsequently, it donsnt have to depreciate the buildings, but still earning rental income. What is its cost of sales?

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