CERTYNEX IFRS ACADEMY

The Solvane group measures all its investment property under the IAS 40 fair value model. It leases an office building for 15 years, which it fully sublets to third parties; it is established (given) that this right-of-use asset meets the definition of investment property. How does Solvane measure this right-of-use asset after the commencement date?

Under the cost model, like any right-of-use asset, since it does not own the building.

Under the IAS 16 revaluation model, applied to the class of buildings.

At its choice, at cost or at fair value, for this right-of-use asset only.

Under the IAS 40 fair value model, like its other investment property.