Dear Mike.How can the entity achieve capital growth in line with IAS 40?
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IAS40-Investment property
10y ago#1By the value of properties rising? Is that what you mean or do you mean that, because all movements in value go through statement of profit or loss, there's no chance to accumulate wealth in the form of revalued investment properties?
Yes by the value of properties rising.
10y ago#3Well, I believe that I answered it! If all changes go through statement of profit or loss in the year of change, then recording capital growth is a non-concept
But if the accounting treatment adopted is the cost model, then changes will not go through statement of profit or loss and any underlying rises will be accumulated and un-recognised until the property is disposed of
All right?
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