clarification on meaning of initial measurement

this may seem like a silly question, but i want to check.

does initial measurement mean the value on the first set of accounts in which it is recognised or at the point it moves and you measure the changes from that point in the first set of accounts?

if moving property from inventory to investment property
initial measurement is at cost, then after that fair value through p and l (usually) although it can be cost with the fair value declared in the notes.

so does it mean 1. if accounts are done in december and the property moves from inventory to investment property in june, a property with an inventory value of £2 but a fair value of £4 will be recognised at the end of the year at £2 because that is the cost because initial measurement means the first time it is recognised in the accounts.

or is it option 2, that the property is valued at 2 when it moves to investment property in june but is recognised at 4 in the end of year accounts with 2 going to profit.