IAS 40Chapter 8Lesson 1
The cost model: depreciating and testing for impairment
Step 1 of 8Learning objectives
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The cost model refers to IAS 16: cost, depreciation and impairment, except for property held for sale; a right-of-use asset follows the IFRS 16 cost model.
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Learning objectives
- Apply the IAS 16 cost model to an investment property.
- Calculate depreciation of the building without depreciating the land.
- Account for depreciation and an impairment loss.
- Place property held for sale and the right-of-use asset.