CERTYNEX IFRS ACADEMY

An entity applies the cost model and holds a right-of-use asset meeting the definition of investment property. What must it do after initial recognition?

Not depreciate the right-of-use asset, since it is not an item the entity owns.

Revalue the right-of-use asset at fair value and recognise the difference in other comprehensive income.

Depreciate and impair the right-of-use asset, like any property measured under the cost model.

Expense the right-of-use asset as soon as the lease contract is signed.