CERTYNEX IFRS ACADEMY

Owner-occupied property becomes an investment property that will be measured at fair value. What treatment applies up to the date of the change in use, and on that date?

Measurement at fair value from the start of the period, with a difference recognised in profit or loss at the date of transfer.

No depreciation up to that date, then the difference with fair value ignored.

Transfer at carrying amount, with no difference arising in the accounts.

Depreciation and impairment up to that date, then the difference with fair value treated as a revaluation under IAS 16.