CERTYNEX IFRS ACADEMY

A fire destroys Hortane's investment property, measured under the cost model and carried at 1,200,000. The property is permanently out of use and no disposal proceeds are expected (case facts). Which treatment is consistent with the rule?

Keep the property as an asset until it is actually demolished.

Reclassify the property as inventory at 1,200,000 pending a possible sale.

Spread the loss of 1,200,000 over the following periods.

Derecognise the property and recognise a loss of 1,200,000 in profit or loss.