Financial Reporting and Analysis III
Reading 26. Long-lived Assets
Learning Outcome Statements
n. compare the financial reporting of investment property with that of property, plant, and equipment;
CFA Curriculum, 2020, Volume 3
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Subject 8. Investment Property
Under IFRS, companies are allowed to value investment properties using either a cost model or a fair value model.
- The cost model is identical to the cost model used for property, plant, and equipment (PP&E).
- The fair value model differs from the revaluation model used for PP&E. All changes in the fair value of investment property affect income.
Under U.S. GAAP, there is no specific definition of investment property. Investment properties are generally measured using the cost model.