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1) Sir, supposing a building has 10 floors (Investment property) and 1 floor is used for the staff members of the company.
In this case, will the bulding be apportioned between IAS 16 and IAS 40 or will it be IAS 40 (since major part is being used as an investment)?
2) Supposing if the asset (IAS16) is measured at cost and the investment property is measured at fair value. If the asset is moved from IAS 16 to IAS 40:-
– Will we revalue the asset in the beginning and then transfer to IAS 40? (Even though it follows cost model?).
Thanks
Hi,
1) If it is owned occupied, which one floor is, then it will be PPE and the rest will be IP.
2) It is revalued under IAS 16 and then transferred to IAS 40, regardless of it being held under the cost model under IAS 16.
Thanks
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