Economics · Accounting for Investment Property
Under IAS 40, what is the correct accounting treatment when an owner-occupied property with a carrying amount of $1,000,000 is reclassified as an investment property at a fair value of $1,350,000?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Recognize $400,000 gain in the statement of profit or loss
- 2Recognize $400,000 gain in other comprehensive income
- 3Recognize $350,000 gain in the statement of profit or loss
- 4Recognize $350,000 gain in other comprehensive income✓
Correct answer
Recognize $350,000 gain in other comprehensive income
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