Why gain or loss arising from change in fair value of investment property is charged to P/L instead of creating revaluation surplus just as in cost model? And why no depreciation is charged in fair value model?
Investment property is remeasured at fair value, which is the amount for which the property could be exchanged between knowledgeable, willing parties in an arm’s length transaction. [IAS 40.5] 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 it arises. [IAS 40.35]”
OK?
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