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1. in class of assets in PPE, let’s say land and if we say the land will be revalued as per PPE accounting standard and standard says the whole class of asset will be applied samely then the “class” means the whole land ? or is there like a class in which partially
2. if investment property were to be applied as a fair value model, then this model once been elected and can’t be changed from one year to another frequently ?
3. If whether PPE or investment property once it’s elected as fair value model, they can be impaired right ? because i notice only cost model has impairment loss so i’m not sure whether fair value model can also be lowered by impairment
1. See the answer to Q1 on this post https://opentuition.com/topic/general-enquiries/
2. IFRS generally does not permit switching between accounting policies. You should know that a policy should only be changed if required by IFRS or “results in the financial statements providing reliable and more relevant information about the effects of transactions, other events or conditions on the entity’s financial position, financial performance or cash flows.” (IAS 8) You should also know (assumed FR knowledge) that the only justification for reverting to the cost model is if the market for comparable properties becomes inactive (i.e. it is not possible to reliably measure fair value).
3. Decreases in fair values take account of impairment – so there is no separate consideration of impairment in fair value models.