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for example like in IAS 40, investment properties, how do we know whether to use fair value model or cost model ? Because the question never state which model to use
Im really confused and also including other IASs as well
Likenon sept/dec 2016 exam question number 1, ZIPPY, how do we know for section 4 whether to use cost model or fair value when they never clearly state on the question ?
In the middle of the paragraph, it says “Zippy has a policy of restating all land and buildings to fair value at each reporting date. “
Then if that paragraph was not mentioned explicitly , we use cost model ?
there isn’t a defaulted one. You should be able to find hints in the paragraphs telling you which method to use.