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Sir, an investment property that’s measured using the fair value model will not be depreciated, right?
So, Ella, if I don’t answer within one hour and twenty six minutes ……… does that give you licence to step in?
Sandy, that’s what the IAS says. Remember, an investment property is one that is acquired for its capital appreciation or for its income earning potential and is not intended to be used in the ordinary course of business neither for production nor administration
Under the fair value model any change in value is automatically dealt with under the prescribed way in the IAS.
If we’re under the cost model, depreciation matches the use of the asset against the income that it generates
Ok?
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