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Sir? Anyone can anwer me Please:
There is to types o measurmentS : Cost Model and Revalution Model: so
Revalution Model Asset (IAS 40) is not Going to be depreciated as per FV model Usage:
But in Cost Model : I had seen the depreciation treatment. So why Investment Properties are depreciated in COST Model.
I am confused. Why Depreciated.
Regards
ARSHADWhen using the cost model, the investment property is treated in the same way as any PPE – that is, it is depreciated over its estimated useful life
But the nature of an investment property is that it is held for its earning potential either through a stream of income or though capital growth
In that respect it would seem counter-intuitive to depreciate it particularly in the context of expecting capital appreciation
Does that answer you?
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