Investment property is held to earn rental income or obtain benefits from increases in value, or both. Investment property is not used in operating activities.
Investment property is initially recognized at purchase price or production cost, plus transaction costs. After initial recognition it is measured at fair value, in accordance with the rules described in section 9.1.5. Gains and losses resulting from the change of fair value of investment property are recognized in the consolidated profit and loss account under “Net movement in fair value of assets and liabilities measured at fair value” item in the period in which they occurred.
If owner-occupied property becomes investment property, depreciation is charged up to the date of reclassification and impairment losses, if any, are recognized and then:
On subsequent disposal of the investment property, revaluation reserve may be transferred to supplementary capital.