[lynchpeter1]

By email: complaints@accaglobal.com
Please provide your full name and ACCA registration number in your email.

I’ve sent an email. Anyone else?

[lynchpeter1]

@kbourne said:
I think it stated in the question they valued using fair values. but I think the issue was they over valued to avoid the breach of covenants and should have used the professional valuers valuation of 22 million. Think the lease was thrown in there to test your understanding of the IAS as per your point 1

Phew. I talked about IFRS 13 level 1 level 2 valuations and IAS 1 how the breach of covenant could lead to current liabilities.

I didn’t talk about the lease Itself though

[lynchpeter1]

After lease commencement, a lessee shall measure the right-of-use asset using a cost model, unless: [IFRS 16:29, 34, 35]

i) the right-of-use asset is an investment property and the lessee fair values its investment property under IAS 40; or

ii) the right-of-use asset relates to a class of PPE to which the lessee applies IAS 16’s revaluation model, in which case all right-of-use assets relating to that class of PPE can be revalued.

So should the investment property in Q2 be valued at fair value and not cost?

[lynchpeter1]

Hi ACCA13,

I cant find the link for the IAS summaries,

What do I type into google to find it?

Thanks

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