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Dear Mike,
As per lecture notes, page 143:
Measurement and transfers of Investment property:-
• subsequent to initial recognition, entity may choose cost model (benchmark) or fair value model (allowed alternative)
• cost model? carry at fair value based on market state and circumstances.My question is, if cost model is carried out at fair value based on the market state, then what is fair model? and how is it different from the cost model?
The note needs to be revised! I think that Admin, when the notes were being typed, put a question mark after “Cost model” because there was no explanation and then did,’t bring it to my attention
Here’s the link to the IASPLUS web page that explains it
Thanks for bringing it to my attention
is property leased or sub-let to the subsidiary treated as investment property or owner’s property?
Thanks. Actually I thought of it to be the same, but strangely J13Q5 solution treated it as to be a Investment property, so just wanted to confirm it. Cheers 🙂
Note this!
Intracompany rentals.
Property rented to a parent, subsidiary, or fellow subsidiary is not investment property in consolidated financial statements that include both the lessor and the lessee, because the property is owner-occupied from the perspective of the group.
However, such property could qualify as investment property in the separate financial statements of the lessor, if the definition of investment property is otherwise met
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