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Chapter 2

6.5 Transfers to and from investment property

If the fair value model for investment property is used, then the property should be
revalued before being transferred between investment property and property, plant
and equipment.

 From investment property to property, plant and equipment

– revalue using IAS 40 rules, taking gain or loss to profit or loss

 From property, plant and equipment to investment property

– revalue using IAS 16 rules taking gain or loss to revaluation surplus or
profit or loss as appropriate

Illustrations and further practice

Now try TYU questions 8 and 9 from Chapter 2 of the Study Text.

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