IAS 40 Investment property

This topic has 5 replies, 3 voices, and was last updated 11 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: 2
- Replies: 488
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: 23368
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: 23368
No worries!
Author
Posts

Viewing 6 posts - 1 through 6 (of 6 total)

You must be logged in to reply to this topic.