What is the best evidence of fair value of an investment property?

How do you determine the fair value of an investment property?

Fair value is the price at which the property could be exchanged between knowledgeable, willing parties in an arm’s length transaction, without deducting transaction costs (see IFRS 13). Under the cost model, investment property is measured at cost less accumulated depreciation and any accumulated impairment losses.

Can investment property be measured at fair value?

Investment properties are initially measured at cost and, with some exceptions. may be subsequently measured using a cost model or fair value model, with changes in the fair value under the fair value model being recognised in profit or loss.

Should you depreciate investment property?

Answer. No Depreciation will be charged on the investment property. As per the FRS 102, section 16.7, An investment property shall be measured at fair value at each reporting date with changes in fair value recognized in profit or loss.

What are the criteria for investment property?

These are:

  • The location.
  • The market drivers.
  • The individual property. My Top 20 Criteria is built around assessing a combination of these factors.
  • Location. Location, location, location… …
  • Price/Affordability. …
  • Rental Yield – the Cash Flow. …
  • Population Growth & Demographics. …
  • Rental Vacancy.

How do you identify an investment property?

A property will be recognized as Investment Property if it meets the following criteria:

  1. The definition of Investment Property.
  2. It is probable that future economic benefits ill flow to the entity.
  3. The cost is reliably measurable.
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