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I have classifed a property from being used for business to investment property I would like to know its treatment.
in IAS 40 - Investment Property by

1 Answer

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The change of classification of properties from owner occupied property /business use to investment property is allowed only when its use has actually been changed.  For the transfer of property form owner occupied to investment property at fair value, IAS 16 should be applied form the date of recognition up to change of use.  Any difference arising from the application of IAS 16 for the measurement of fair value will be treated as revaluation and revaluation surplus or deficit will be recognized directly in comprehensive income statement.
by Level 2 Member (4.6k points)