Cost vs fair value model

6 min · IAS 40
01 · Concept

Property held to earn rentals or for capital appreciation — measure using cost model (like IAS 16) or fair value model (changes to P&L).

  • 01Choice applied to ALL investment property.
  • 02Fair value changes go to P&L (not OCI).
  • 03Transfers between categories only on change in use.