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Does the standard allow to change from fair value model to cost model
in IAS 40 - Investment Property by

2 Answers

0 votes
It is not prohibited. But the change has to be as per IAS 8.

Noted that IAS 40 says
"IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors states that a
voluntary change in accounting policy shall be made only if the change results
in the financial statements providing reliable and more relevant information
about the effects of transactions, other events or conditions on the entity’s
financial position, financial performance or cash flows. It is highly unlikely that
a change from the fair value model to the cost model will result in a more
relevant presentation."
by Level 5 Member (25.6k points)
0 votes
I AS 40  does not permit a change from the fair value model to the cost model. The only change permitted is when it results in proper presentation and a change from fair value to cost value model might not provide relevant information for stakeholders.