Interaction with IAS 36

Learning objectives

• Place the impairment of a property carried at cost under IAS 36.L2, L3

Normative references

• IAS 40 §56Cost model: after initial recognition, (a) IFRS 5 if the property meets the criteria to be classified as held for sale; (b) IFRS 16 if the property is held by a lessee as a right-of-use asset and is not held for sale; (c) IAS 16 (cost model: depreciation and impairment) in all other cases.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• An investment property measured under the fair value model is tested for impairment under IAS 36 every year.L2