IAS 40 – Investment Property – Theory – 3

If an entity has previously measured an investment property at fair value, it shall continue to measure the property at fair value __________.

Under which of the following circumstances shall transfers to, or from, investment property be made?

For a transfer from investment property carried at fair value to owner-occupied property or inventories, the property’s deemed cost for subsequent accounting in accordance with IAS 16 or IAS 2 shall be its fair value at the date of change in use.

Under which of the following circumstance shall an investment property be derecognised?

Losses arising from the retirement or disposal of investment property shall be determined __________ and shall be recognised in profit or loss (unless IFRS 16 requires otherwise on a sale and leaseback) in the period of the retirement or disposal.

An entity X has three investment properties, A, B and C. At the beginning of the financial year the carrying amount of each the three properties was $25,000. At the end of the financial year, following a professional appraisal of value, the properties were valued at $22,000, $24,000 and $26,000 respectively. If the entity applies IAS 40 for its investment properties, which of the following statements would be true?