Accounting · IAS 40 Investment Property
Subsequent to initial recognition, investment properties held at fair value are not depreciated. Which of the following is a valid justification under IAS 40 for investment properties held at fair value not being subject to depreciation, whereas property, plant and equipment held at fair value is subject to depreciation?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1An investment property is likely to increase in value so any residual value would be greater than its carrying amount.✓
- 2Investment properties never decrease in market value.
- 3It is impossible to reliably measure the useful life of an investment property.
- 4Investment properties do not generate income to match against any depreciation expense.
Correct answer
An investment property is likely to increase in value so any residual value would be greater than its carrying amount.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Accounting?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice IAS 40 Investment Property MCQs →Want more practice questions on IAS 40 Investment Property?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Accounting · IAS 40 Investment Property