IAS 40 Accounting Entries

Question 1

Accounting entries for cost model IAS 40 depreciation?

Answer 1

Debit: Depreciation expense
Credit: Accumulated depreciation

Question 2

What if the fair value of the property increases?

Answer 2

Debit: Investment Property (fair value)
Credit: Revaluation Surplus

Question 3

What if the fair value of the property decreases?

Answer 3

Debit: Impairment Loss (Income Statement)
Credit: Investment Property (fair value)

Question 4

Investment property to PPE accounting entry

Answer 4

Debit: PPE (at the carrying amount before reclassification)

Credit: Investment Property (at the carrying amount before reclassification

Question 5

PPE to investment property accounting entry

Answer 5

Debit: Investment Property (at the carrying amount before reclassification)
Credit: PPE (at the carrying amount before reclassification)