Accounting · IAS 40 Investment Property
Which statement best describes the accounting treatment that should be applied to the decrease in the fair value of an investment property carried under the revaluation model (in accordance with IAS 16/IAS 40)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The decrease is recognized in profit or loss to the extent of any previous increase in fair value, and thereafter in other comprehensive income.
- 2The decrease is recognized in other comprehensive income to the extent that a revaluation surplus exists for that property, and thereafter in profit or loss.✓
- 3The decrease is always recognized in other comprehensive income only.
- 4The decrease is always recognized in profit or loss only.
Correct answer
The decrease is recognized in other comprehensive income to the extent that a revaluation surplus exists for that property, and thereafter in profit or loss.
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