• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Investment property

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Investment property

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by mrjonbain.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • January 12, 2022 at 4:20 pm #645779
    hm1995
    Participant
    • Topics: 48
    • Replies: 11
    • ☆☆

    I would like to understand why does a gain on fair value model of investment property go to profit and loss straight and not to revaluation surplus? As its a gain which hasnt realised, and so when we put a gain to P/L account arent we considering as realised? I dont understand the logic behind it.

    January 13, 2022 at 12:04 pm #645861
    mrjonbain
    Moderator
    • Topics: 1
    • Replies: 1570
    • ☆☆☆☆☆

    If you think about other assets to which revaluation could be applied this may make it easier to understand. Let’s say for instance a building owned by company that couldn’t be classified as an investment property. In this case depreciation would be charged on this asset at revalued amount over remaining useful life. In a sense the standard on investment property exists to avoid “punishing” companies for holding investment properties. Investment properties are viewed as a different category of asset. You are correct in the sense that the gain on investment properties would not be seen as realised in legal terms and would not be considered distributable to shareholders in most jurisdictions. Hope this helps.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • MelodyC on MA Chapter 10 Questions The Management Accountant’s Profit Statement – Marginal Costing
  • douglasnyangara on Foreign exchange risk management (1) Part 4 – ACCA (AFM) lectures
  • douglasnyangara on Foreign exchange risk management (1) Part 4 – ACCA (AFM) lectures
  • AnnaTeddy on Basic group structures – SPLOCI introduction and example – ACCA (SBR) lectures
  • tanyanti on Conceptual Framework – ACCA SBR lecture

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy