Investment property Flashcards
1
Q
Accounting policy
A
IAS 40
2
Q
Define an investment property
A
One that is used for rental income and capital appreciation (not day-to-day activities) and now owner occupied
3
Q
Initial Measurement
A
At cost
4
Q
Subsequent measurement
A
Either (a) value as a normal non-current asset at depreciation cost (same as PPE)
(b) fair value model
5
Q
Fair value model
A
- Revalue at each year end
- Recognise and profit or loss to the p and l
- depreciation is not charged on the revalued model
6
Q
Method
A
whichever policy is chosen it should be applied to all of its investment properties.
7
Q
Change of use
A
The deemed new cost of the property is taken to be its fair value at the date of change in use. This is the new ‘cost’ that now will be depreciated.
