Accounting · IAS 40 Investment Property
A company measures its investment property using the Fair Value Model. On 1 January 20X6, the company begins owner-occupation of the property, transferring it to Property, Plant and Equipment (PPE) under the Cost Model. The property had a fair value of $800,000 at the transfer date. What is the deemed cost of the property for subsequent accounting under IAS 16 on 1 January 20X6?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$800,000 less accumulated depreciation calculated retrospectively
- 2$700,000
- 3$800,000✓
- 4$600,000
Correct answer
$800,000
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