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    Question

    As per AS 10 (Revised) ‘Property, Plant and

    Equipment’, an enterprise holding investment properties should value Investment property:
    A As per fair value Correct Answer Incorrect Answer
    B Under discounted cash flow model Correct Answer Incorrect Answer
    C Under cost model Correct Answer Incorrect Answer
    D Under cash flow model Correct Answer Incorrect Answer

    Solution

    Under AS 10 (Revised) in India, investment property must be measured using the cost model, even though its fair value must be disclosed in the notes. This differs from Ind AS 40, where entities have the option to use fair value (disclosed but not used for measurement in AS).

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