CERTYNEX IFRS ACADEMY

A management accountant comments on the classification of an indivisible property partly occupied by the entity. Which of the analyses is incorrect?

"The threshold is 10% of the area: below it, the property is automatically an investment property."

"As the parts cannot be sold separately, the property is an investment property only if the occupied part is insignificant."

"Whether the occupied part is insignificant is assessed from the facts specific to the property."

"If the parts could be sold separately, they would be accounted for separately before any examination of that point."