IAS40 Flashcards
1
Q
What is an investment property?
A
Land/Buildings held to earn rentals or for capital appreciation
Not acquired for ‘use’
2
Q
They are only recognised as an asset if what?
A
- probable future economic benefits will flow to the entity
- cost can be measured reliably
3
Q
What is the initial measurement of an investment property.
A
It is initially measure at cost
4
Q
What are the measurement models called?
A
1) Fair value model
2) Coat model
5
Q
What do we do under the fair value model?
A
It is the price that property can be exchanged with in an arm’s length transaction
There is no depreciation
Gains or losses are shown in the SPLOCI-P/L
6
Q
What do we do under the cost model?
A
At cost less accumulated depreciation
