115 CFA
File: - Financial Analysis - Reading 26 - 8. Investment Property

8. Investment Property

n. compare the financial reporting of investment property with that of property, plant, and equipment;

What is the accounting definition of investment property?
Investment property is defined as property that is owned (or, in some cases, leased under a finance lease) for the purpose of earning rental income, capital appreciation, or both.

What is the cost model of valuing investment property?
The cost model is identical to the cost model used for property, plant, and equipment (PP&E).

What is the fair value model of valuing investment property?
The fair value model differs from the revaluation model used for PP&E. All changes in the fair value of investment property affect income.

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