CERTYNEX IFRS ACADEMY

Brenmore owns a 6,000 m² office building that cannot be sold in parts. It occupies 150 m², that is 2.5% of the area (case data), for an archive room. The rest is leased to third parties. Which reasoning is most consistent with the rule?

Classify the whole as investment property, because 2.5% is below the 5% threshold set by the standard.

Account separately for the 150 m² as owner-occupied property, because any occupation by the entity requires it.

Classify the whole as investment property if, on the facts, the occupied part is judged insignificant; the area ratio informs that judgement without setting a threshold.

Classify the whole as owner-occupied property, because the entity occupies part of it.