IAS 40Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › IAS 40This topic has 1 reply, 2 voices, and was last updated 6 years ago by MikeLittle.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts January 9, 2018 at 1:40 pm #428037 adarsh1997ParticipantTopics: 635Replies: 282☆☆☆☆Could you explain the reasoning behind why for IAS 40 the gain or loss is shown directly in the P&L? January 9, 2018 at 2:23 pm #428051 MikeLittleKeymasterTopics: 27Replies: 23135☆☆☆☆☆Because it’s the equivalent of profits / gains from trading.Investment properties are specifically held for their income earning potential or capital growth potentialThis compares with “normal” property, plant and equipment and with land and buildingsThese are held for use in the business so they are a means to an end whereas investment property is a profit generator on its ownOK?AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)The topic ‘IAS 40’ is closed to new replies.