- CFA Exams
- CFA Exam: Level I 2021
- Study Session 8. Financial Reporting and Analysis (3)
- Reading 26. Long-lived Assets
- Subject 8. Investment Property
CFA Practice Question
Which asset is qualified to be an "investment property" under IFRS?
B. An apartment building owned by a property management company
C. A house owned by a construction company to be sold once the construction work is done
A. An office building used by GM for its employees
B. An apartment building owned by a property management company
C. A house owned by a construction company to be sold once the construction work is done
Correct Answer: B
To qualify as an investment property, the property should be owned for the purpose of earning rental income or capital appreciation or both.
User Contributed Comments 3
| User | Comment |
|---|---|
| farhan92 | i guess C would be considered inventory more than investment property. |
| chesschh | generate fixed income |
| prapps | Is it still an investment property if you are in a property management business as leasing is part of your day to day business? |