C4 IAS 40 Investment Property

Question 1

Definition

Answer 1

Property held to earn rentals or for capital appreciation or both rather than for:

• use in the production or supply of goods or service or for admin purposes; or
• sale in the ordinary course of business

Question 2

Recognition when

Answer 2

1. Probable that future economic benefits will flow to the entity.
2. The cost of the asset can be measured reliably

Question 3

Initial measurement:

Answer 3

1. Cost
   - purchase price
   - directly attributable expen

After recognition

Cost

FV model

Question 4

Impairment

Answer 4

Charge to PL