CERTYNEX IFRS ACADEMY

Cygnus SA holds two investment properties (case facts). The board decides to sell the Rive property as it stands, without development, and to redevelop the Parc property, which will continue to be leased to third parties after the works. How are these properties classified in the meantime?

Both remain investment property: Rive until it is derecognised, Parc during the works.

Rive is transferred to inventories as soon as the sale is decided; Parc remains investment property during the works.

Rive remains investment property; Parc is reclassified as owner-occupied property during the works.

Both are transferred to inventories, since the board's decision changes their use.