CAF-1 · Chapter 4 · Question 10 of 15
When an entity transfers an investment property carried at fair value to owner-occupied property (PPE), what is the deemed cost for subsequent accounting?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The fair value at the date of change in use.
Explanation
For transfers from investment property at fair value to owner-occupied property, the fair value at the date of change in use becomes the deemed cost.
More IAS 40 Investment Property MCQs
- Q12When an investment property is disposed of, the gain or loss is calculated as the difference between:
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- Q14If an entity uses the fair value model but cannot reliably determine the fair value of an under-construction investment property, what…
- Q15Which of the following is a general disclosure requirement for all investment properties under IAS 40?
- Q1Which of the following properties owned by a company would be classified as an investment property under IAS 40?