ACCA FR · Chapter 2 · Question 9 of 11
Which of the following properties would be classified as investment property under IAS 40 in the individual financial statements of the owner?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) An office block owned by the entity and let to an unrelated company under an operating lease
Explanation
Investment property is property held to earn rentals or for capital appreciation, or both. An office block let to a third party fits this definition. Owner-occupied property falls under IAS 16, property held for sale in the ordinary course of business is inventory under IAS 2, and property built for customers is accounted for under IFRS 15.
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