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Hello sir i have same queries about these 2 standards,
IAS 40 and Assets Held for Sale
Are IAS 40 and assets held for sale depreciated? Secondly can they be revalued and where does the revaluation gain go in fstatements?
IAS 40:
Under the fair value model gains or losses arising from changes in the fair value of investment property must be included in net profit or loss for the period in which they arise
Under the cost model, investment properties are treated as any other PPE in accordance with IAS 16 – ie they are held at cost and depreciated over their estimated useful lives
Under the fair value model the investment property is revalued annually
Under the cost model, no, they are held at cost less accumulated depreciation
IFRS 5 – no depreciation on assets held for sale
Any impairment on revaluation after having been classified as held for sale is written off to profit or loss
A gain for any subsequent increase on revaluation can be recognised in the profit or loss only to the extent of the cumulative impairment losses that have previously been recognised on that asset
OK?
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