CERTYNEX IFRS ACADEMY

A management accountant comments on the risk of double counting in the fair value measurement of an investment property. Which of the statements is incorrect?

"Fair value may already include items recognised elsewhere; they must not be counted twice."

"To avoid double counting, amounts already recognised separately are deducted from the appraisal value."

"If the appraisal value already includes the furniture of a furnished leased office, it is also recorded separately as an asset."

"Double counting would distort both the amount of the asset and the fair value result."