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Hello tutor,
When any inventory is transferred to investment property and any revaluation takes place at the date of change, then what about the revalued amount..will it go to OCI or P&L ?
As in case of IAS16 PPE, any non current asset is when transferred to IP, revaluation amount goes to OCI.2.question
If the IP is carried at cost method (IAS16) and then a change takes place to inventory/PPE , is it still required under (as it is cost method ) to revalue the IP at fair value and then record inventory/PPE at revalued amount ?@alikhakar said:
Hello tutor,
When any inventory is transferred to investment property and any revaluation takes place at the date of change, then what about the revalued amount..will it go to OCI or P&L ?
As in case of IAS16 PPE, any non current asset is when transferred to IP, revaluation amount goes to OCI.Hi,
For inventory the gain would go through profit or loss, for PPE it would go through OCI.
Thanks
@alikhakar said:
2.question
If the IP is carried at cost method (IAS16) and then a change takes place to inventory/PPE , is it still required under (as it is cost method ) to revalue the IP at fair value and then record inventory/PPE at revalued amount ?Hi,
As the IP is held under the cost model, there is no requirement per IAS 40 to value it at fair value prior to the change in use. The asset will just be transferred over at its carrying value.
Thanks
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