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Could you explain the reasoning behind why for IAS 40 the gain or loss is shown directly in the P&L?
Because it’s the equivalent of profits / gains from trading.
Investment properties are specifically held for their income earning potential or capital growth potential
This compares with “normal” property, plant and equipment and with land and buildings
These are held for use in the business so they are a means to an end whereas investment property is a profit generator on its own
OK?
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