CERTYNEX IFRS ACADEMY

An owner leases a building and provides some services to the occupants. Which of these statements are correct? (More than one answer possible.)

If these services are a relatively insignificant component of the arrangement as a whole, the property remains an investment property.

As soon as the owner provides a service to the occupants, the property becomes owner-occupied property.

Assessing how significant the services are can be difficult and calls for judgement based on the facts.

A hotel management contract settles the classification on its own, with no further analysis.

Whether the owner is a passive investor or an operator matters in the assessment.