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IAS 40 Investment property

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS 40 Investment property

  • This topic has 5 replies, 3 voices, and was last updated 10 years ago by MikeLittle.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • September 15, 2014 at 3:41 am #194968
    sashimi
    Member
    • Topics: 3
    • Replies: 11
    • ☆

    Hi Mike! IAS 40 allows us to choose between fair value model and cost model, but is there any criteria for choosing? For eg fair value can’t be measured so have to use cost model?

    September 15, 2014 at 3:52 am #194969
    alkemist
    Participant
    • Topics: 3
    • Replies: 493
    • ☆☆☆

    No criteria. Basically left to the discretion of the entity.

    September 15, 2014 at 4:37 am #194971
    sashimi
    Member
    • Topics: 3
    • Replies: 11
    • ☆

    if we choose cost model, we need to depreciate it, but since the property is not held for use, depreciation seems not appropriate?

    September 15, 2014 at 5:14 am #194973
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23309
    • ☆☆☆☆☆

    But it’s what the IAS says so its what we must do!

    September 16, 2014 at 5:26 pm #195172
    sashimi
    Member
    • Topics: 3
    • Replies: 11
    • ☆

    thank you for solving this!!!

    September 16, 2014 at 7:20 pm #195185
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23309
    • ☆☆☆☆☆

    No worries!

  • Author
    Posts
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