- This topic has 1 reply, 2 voices, and was last updated 2 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › 2019 Specimen paper, Q1 (a) investment property, incorrect classification
Dear tutor
for FV model gain recognised in profit and loss,
-why this gain can’t go to OCI?
-does the “gain” mean when we remeasure the investment property, there is a higer value than last year, so caused the gain? for cost model, there won’t be any gain ever, is it correct?
Many thanks
Because that’s where IAS 40 says it goes!
So every year, the entries for the increase in fair value will be Dr IP Cr Profit or loss (the opposite for a decrease). This means that the IP is shown in SoFP at FV – there is no depreciation.
The cost model for IP is the same as for PPE under IAS 16. The only gain will be on disposal. But there would be nothing to stop management from changing policy from cost model to FV model – but it couldn’t then switch back again.