Investment property Flashcards
1
Q
Investment property definition (IAS40)
A
Is a property (land or building or part of) to earn rental (which would be an operating lease) or held for capital gain.
Not in normal course of business.
2
Q
Measurement
A
Initial: cost plus directly attributable costs (including taxes)
Subsequently: FV (normally FV) and cost model
FV at each reporting date, gains(losses) straight to P&L, not depreciated (if mid year disposal use FV at that date)
Cost less depreciation (would have to disclose FV in notes)
3
Q
Group investment properties
A
If sub rents a building from parent
In parent own accounts would be investment property (IAS 40) but in consolidated would be for for groups use and would just be PPE (IAS16)
